Venture capital-backed electronics e-tailer Newegg hopes to raise $175 million in an initial public offering, according to a regulatory filing. In the US Securities and Exchange Commission filing, Newegg says it has been profitable every year since 2001, and claims to have generated $2.1 billion in sales last year alone – not bad for an e-commerce operation who's in direct competition with behemoths like Amazon and Best Buy.
The California-based company expects to face increase opposition from other e-commerce businesses, including Circuit City. Although it went bankrupt not long back, Systemax (the owner of TigerDirect and CompUSA) purchased Circuit City and brought its website back to life.
Newegg's largest shareholder is venture-capital firm Insight Venture Partners, which holds a 12.7% stake in the company after handing it $20 million in 2005. Newegg plans to expand operations in China and Canada with the IPO-raised funds. The IPO is being managed by JP Morgan, Bank of America Merrill Lynch and Citi.