Chewy Inc (NYSE:CHWY) shares are trading lower in Monday’s after-hours session after the company announced a public offering of common stock by a selling stockholder.

What Happened: After market close on Monday, Chewy said it commenced an underwritten public offering of $1 billion of its Class A common stock by Buddy Chester Sub LLC, an entity affiliated with Chewy’s largest shareholder.

The selling stockholder expects to grant the underwriters a 30-day option to buy up to an additional $150 million of common stock.

Chewy is not selling any shares in the offering and will not receive any proceeds.

In connection with the offering, Chewy agreed to concurrently repurchase $100 million of its common stock from the selling stockholder at a purchase price equal to the price paid by the underwriters. The repurchase will be separate from the company’s existing $500 million buyback that was authorized on May 24.

Chewy repurchased $23 million of its common stock in the first quarter and ended the period with $616.4 million in cash and cash equivalents.

CHWY Price Action: Chewy shares were down 3.14%, trading at $42 in Monday’s after-hours session after rising 3.51% during regular trading hours, per Benzinga Pro. Chewy shares are up nearly 30% year-to-date.

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