Shares of Chewy Inc. (CHWY) fell by 2.7% to $31.65 in after-hours trading following the announcement of a secondary offering and a concurrent share buyback. The online pet products retailer revealed a $500 million share offering, with private equity firm BC Partners acting as the seller.

Barclays is serving as the sole underwriter for this offering. In addition to the share sale, Chewy plans to repurchase $50 million worth of shares from its largest investor, BC Partners. Based on Chewy's closing price of $32.54, BC Partners is expected to offload approximately 17 million shares.

Despite the drop in after-hours trading, Chewy's stock had a strong performance earlier, finishing the regular session up 3.7% and showing a year-to-date increase of 38%. The company has around 408.3 million shares outstanding, giving it a market capitalization of approximately $13.3 billion, according to LSEG data.

Last Wednesday, Chewy reported its third-quarter adjusted earnings per share (EPS) of $0.01 and revenue of $2.9 billion. These figures fell short of consensus estimates, which anticipated an EPS of $0.08 and revenue of $2.9 billion.