business

Petco valued at over $5B after Nasdaq debut

Shares of Petco rose in their market debut on Thursday, giving the pet retailer a market capitalization of $5.69 billion.

The company’s shares opened at $26, 44.4 percent above its initial public offering (IPO) price of $18 per share. Petco offered 48 million shares and raised $864 million in its IPO.

Petco’s debut comes in a week that could be the biggest week for new listings in over five years, as companies rush to cash in on the strongest market for IPOs in nearly two decades, after a pandemic-driven lull last year.

Founded in 1965, Petco is among the biggest pet retailers in the United States with nearly 1,470 brick-and-mortar pet care centers across the country, according to a regulatory filing by the company.

The company’s owners, CVC Capital Partners and Canada Pension Plan Investment Board (CPPIB), were considering a sale of the business last September at a $6 billion valuation, besides a traditional IPO.

CVC and CPPIB acquired Petco from TPG Capital and Leonard Green and Partners for about $4.6 billion in 2016.

Petco has posted a net loss of $24,826 on net sales of about $3.58 million in the 39 weeks ended Oct. 31, the filing showed.

Goldman Sachs and BofA Securities were the lead underwriters for the offering.

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