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Newegg Inc is a venture capital backed online retailer. The company specializes in selling computers, computer hardware, software and other electronics. The company has been known for its pretty good customer service, fast shipping, and selection. It also has some pretty good deals on the site quite often and usually you can find free shipping codes around the internet. All of that together makes Newegg a pretty good company to do business with.

The company now, however, is planning to raise up to $175 million by having an initial public offering. At least, that is what the company is trying to do according to a regulatory filing with the United States Securities and Exchange Commission.

According to the filing, the Southern California based business has been profitable every single year since 2001. It has also generated over $2 billion in sales in 2008.

In the filling, Newegg said that it wants to increase its position against competition from other online retailers of electronics. They cited Circuit City as one of the stores that are starting to gain some ground with business. Even though Circuit City went bankrupt last year and closed all of their stores, the website was purchased by another company and it has been up and running.

The money from the IPO is said to be used to expand the company’s operations in foreign markets such as Canada and China. It will also be managed by JP Morgan, Bank of America Merrill Lynch, as well as Citi.

Currently, the largest shareholder of Newegg is the venture capital firm Insight Venture Partners. The New York based company’s portfolio also has Medidata Solutions. Medidata just completed an IPO in April of this year.

Everyone is hoping that along with the IPO, the company keeps its customers happy. Once a company does something like this, their focus usually turns to the shareholders and making sure that they are happy. However, I believe that the best way to keep shareholders happy is to make sure that your customers are happy. If the customers are happy, then they will continue to shop with the store.

This is probably a pretty good thing for this company to do. It is a company that has been profitable for the past 8 years and will likely continue to be profitable if it keeps its business plan in place. The competition out there for online retailers of electronics is pretty rough…most people who shop for electronics online are shopping for the best deal and not just convenience.

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Jeremy

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