Market Overview

Petco Raises $864M In Upsized IPO

Petco Raises $864M In Upsized IPO

Petco Health and Wellness Company Inc. announced Wednesday that it issued 48 million shares at $18 per share in its initial public offering. The issue price was higher than the earlier marketed price range of $14 to $17.

What Happened: Petco is set to raise $864 million in the IPO and will list its shares on the Nasdaq under the symbol "WOOF." The stock's trading will commence on Thursday.

Goldman Sachs Group Inc (NYSE: GS) and Bank of America Corp (NYSE: BAC) are the joint lead book-runners for the offering. The underwriters are entitled to a 30-day option for purchasing an additional 7.2 million shares.

The pet products retailer’s operation is spread across 1,500 stores in the U.S., Mexico, and Puerto Rico. Along with vaccination, pet care, and veterinary services, Petco also supports digital health services, it said in a filing with the U.S. Securities and Exchange Commission.

Why Does It Matter: Petco’s lead investors, private equity firm CVC Capital Partners and the Canada Pension Plan Investment Board, will retain control even after the public issue. The lead investors bought Petco in 2016 for $4.6 billion from private equity firms TPG Capital and Leonard Green & Partners, Bloomberg reports.

The company rebranded from PET Acquisition LLC to Petco Health and Wellness Company Inc. in December.

Petco reported a net loss of approximately $25 million in the initial 39-week period ending October 31, 2020.

See Also: IPO Outlook For The Week: Affirm, Petco, Playtika Lead Busy Week


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