Petco prepares to go public amid retail mania
The owner of the animal supply chainstore Petco raised US$864 million in an initial public offering, returning the retailer to the public market 15 years after it was taken private.
The company, which is changing its name to Petco Health and Wellness Co. in conjunction with the listing, sold 48 million shares for US$18 each, according to data compiled by Bloomberg. The private equity-backed company had marketed the shares for US$14 to US$17.
After the IPO, Petco will continue to be controlled by its current owners, which include CVC Capital Partners and Canada Pension Plan Investment Board. They acquired Petco for US$4.6 billion from TPG and Leonard Green in 2016, a decade after those two firms took Petco private.
San Diego-based Petco has grappled with challenges including rising competition and disruptions to consumer spending amid the coronavirus pandemic.
Petco operates about 1,500 stores across the U.S., Puerto Rico and Mexico, according to its filings. Some offer pet care services, veterinary advice and vaccination clinics, and the company also has a digital health service.
Petco had a net loss of US$25 million on net sales of US$3.58 billion for the 39-week period ended Oct. 31, according to its filings.
The offering is being led by Goldman Sachs Group Inc. and Bank of America Corp. The shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol WOOF.