Petco stock valued its IPO late Wednesday ahead of its trading debut on Thursday above forecasts.
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The pet supplies retailer raised $ 864 million initial public offering after selling 48 million shares at $ 18 each above the expected $ 14-17 range. At that price, the company’s market valuation is over $ 4.6 billion.
Petco health and wellness (SHOT) will join the Nasdaq under the ticker symbol WOOF. Goldman Sachs and Bank of America are the leading banks for the IPO.
It’s not the first time Petco has made a public debut. It went public in 1994 before going private in 2000. It went public again in 2002 before going private again in 2006.
According to IPO research and advisory firm IPO Boutique, Petco is “well oversubscribed” and “underwriters are currently driving pricing high-end or above the $ 14-17 range.”
More pet-related IPOs are planned for 2021. BarkBox, a popular monthly subscription service for dogs, is expected to go public in the second quarter through a merger with Northern Star Acquisitions, a blank check company. It is listed on the New York Stock Exchange under the ticker BARK.
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Petco Stock takes part in rally
Pet ownership boomed during the Covid-19 pandemic as Americans continued to adopt Sprees. According to Shelter Animals Count, a database that follows 500 animal shelters in the US, adoptions increased 15% in 2020 from 2019.
Americans also spent more money on their pets last year. A survey by LendingTree in October found that one in three pet owners increased spending on their pets during the pandemic, although unemployment rose and other types of spending fell.
The trend has raised other animal populations like Tough (CHWY) and Freshpet (FRPT), while PetMed Express (PETS) and PetIQ (PETQ) were mixed.
The tough stock rose 8% to close on a record high of 112.46 am Stock market today. Freshpet fell 1.9%.
Follow Gillian Rich on Twitter for investing news and more.
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