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Petco operates more than a thousand pet care centers that sell supplies but also offer services.
Bruce Bennett / Getty Images
Poshmark
and
Petco Health & Wellness Co.,
the youngest participants in the training market, entered the public stock markets on Thursday. Poshmark shares rose nearly 142%, while Petco rose about 83%.
Poshmark (ticker: POSH)’s share opened at $ 97.50, peaking at $ 104.98. Shares closed at $ 101.50 on Thursday, up 141.7%
The strong performance came after Poshmark raised $ 277.2 million after selling 6.6 million shares at $ 42, above its $ 35 to $ 39 price range.
Morgan Stanley, Goldman Sachs and Barclays are the signatories of the agreement.
Poshmark operates a market that allows consumers to buy and sell new and used items such as shoes, clothing and jewelry. The company had 4.5 million active sellers as of September 30, offering more than 201 million second-hand and new items to 6.2 million active buyers. Poshmark charges a fee of 20% for sales of $ 15 or more.
Petco also made its debut on Thursday and traded on the Nasdaq under Judge WOOF. Shares opened at $ 26 and rose to $ 31.08. The stock ended at $ 29.40, up 63.33%.
“The IPO has exceeded our expectations,” said Petco CEO Ron Coughlin. ‘Real smart investors believed in our strategy and people. This is an exciting day for Petco. ”
The San Diego company raised more than $ 864 million than expected. Poshmark’s IPO raised $ 272.2 million after a higher-than-expected exchange rate.
Late Wednesday, Petco, a pet health and wellness company, sold 48 million shares at $ 18 each, more than $ 14 to $ 17, which investors said they expected. Goldman Sachs and BofA Securities are the signatories of the agreement.
Petco, which no longer calls itself a retailer, operates approximately 1,470 pet care centers that sell food, toys and supplies, while providing professional services such as pet care, veterinary care and pet training.
All proceeds from the IPO will help reduce Petco’s $ 3.24 billion debt burden, Coughlin said. The company’s debt will be reduced by half. This will enable Petco to further expand its business, he said.
“There are a lot of growth opportunities without making acquisitions,” Coughlin said. Barron’s. Petco’s veterinary business grew to 105 clinics this year, up from 15 a year ago, while the digital business grew by 30% in the third quarter. Same-day delivery accounts for 30% of e-commerce orders, Coughlin said.
CVC Capital Partners and the Canadian Board Plan Investment Board will own almost 67% of the company after the IPO. The stock has been publicly traded before, but the company has both been taken privately.
The pet care sector has long been proving to be a recession, as pets are increasingly seen as family members. The industry represented more than 72 million pet households in 2020 and a total liable market of $ 97 billion. The Covid-19 pandemic, which caused the increase in pet adoption, is expected to grow the sector by 7% annually by 2024, Petco’s prospectus said.
Petco is one of the few end-to-end service providers for pet owners. Its stores offer food, care and training, as well as veterinary services. “Owning a pet can be overwhelming,” Coughlin said. “To go to one place for grooming, another place for training … only Petco can bring those together in a wonderful way.”
Write to Luisa Beltran by [email protected]