Petco IPO raises $817 million

Andrew Cummings
January 17, 2021

Petco expects the net proceeds from the offering to reach approximately United States dollars 816.5 million, after the deduction of underwriting discounts and commissions.

Petco went public in 1994, and then was taken private in 2000 when TPG and Leonard Green bought the pet supplies merchant for some $600 million.

Poshmark Inc., the online marketplace for second-hand goods, is discussing pricing its USA initial public offering above a marketed range, according to people with knowledge of the matter. The company, which is changing its name to Petco Health and Wellness Co, is backed by investors including the private equity firm CVC Capital Partners.

Just look at Chewy, which went public last summer at a $9 billion valuation and is now worth over $46 billion.

Products and services from pet stores like Petco have grown in popularity during the pandemic, as an increasing number of Americans adopt new dogs, cats, lizards, and hamsters. In fact, a LendingTree poll in October found that 1 in 3 pet owners increased spending on their pets during the pandemic, even as unemployment climbed and other types of spending declined. It also improved from a net loss of around $94 million in the 2019 period to a net loss of $24.8 million in the 2020 time frame. The company now has approximately 1,470 stores in the United States and Puerto Rico, including more than 100 in-store veterinary hospitals.

The figure includes online orders that are packaged and shipped from stores, orders picked up curbside or orders delivered by a same-day delivery provider.

The company, led by cofounder, president and chief executive officer Manish Chandra, will start trading today on the Nasdaq exchange under the "POSH" ticker symbol.

"It was overwhelming for all of us", Coughlin said.

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