Petco Health and Wellness officially filed and S-1 for an initial public offering as more people adopt pets throughout the pandemic. The company filed to raise USD100 Million but has yet to disclose the number of shares it will be offering or the expected price. It plans to use the ticker symbol “WOOF” once listed on the Nasdaq.
According to Bloomberg, a potential sale or the IPO of Petco would value the retailer at USD6 Billion. Despite struggling under debt from previous buyouts, the pet retailer has experienced growth throughout the year.
Last month S&P analysts stated in a press release, “We believe that Petco has benefited from a shift in consumer discretionary spending toward home-related purchases, including elevating spending on pets, and away from travel, dining, and other experiences that have been limited due to the coronavirus.”
Petco anticipates the number of households with pets to rise by 4% this year, steered by the global pandemic. The push creates a USD4 Billion in incoming demand for pet care items.
Chewy, PetSmart’s online business, went public over a year ago and has witnessed a 150% increase in shares in comparison to the previous year.
Petco’s net sales also rose 9% in the ten months ending October 31, 2020, compared to 2019 metrics. Similarly, same-store sales increased 9.6% this year alone.
After reporting net losses in both 2018 and 2019, Petco has improved its profitability. Throughout the last three years, the company has invested USD300 Million to update its business, launch an e-commerce website and build a full-service veterinary hospital network.