Chewy Inc ( CHWY ) shares are trading lower in Thursday’s after-hours session after the company announced a public offering by a selling stockholder and a concurrent share repurchase.

What Happened: After the market close, Chewy announced an underwritten offering of $500 million of its common stock by Buddy Chester Sub LLC, which is an entity affiliated with funds advised by Chewy’s largest shareholder BC Partners Advisors LP.

The selling stockholder expects to grant the underwriters a 30-day option to purchase up to an additional $75 million of Chewy common stock. The online pet retailer will not sell any shares in the offering or receive any proceeds.

Chewy also agreed to purchase $300 million worth of its common stock from the selling stockholder at a price equal to the price paid by the underwriters in the offering. The repurchased shares will be canceled and retired upon completion of the concurrent repurchase.

Chewy noted that its existing $500 million share repurchase program will not be affected by this transaction.

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CHWY Price Action: Chewy shares were down 3.09% in after hours, trading at $30.15 at the time of publication Thursday, according to Benzinga Pro.