The San Diego-based pet care chain is pricing its 48 million shares of Class A common stock at $18 each, beating forecasts. The offering is expected to close next Tuesday, subject to closing conditions. Morgan Stanley, Goldman Sachs and Barclays are the underwriters.
The nationwide chain — which operates about 1,470 retail stores selling pet supplies and professional services like veterinary care — is changing its name to Petco Health and Wellness in conjunction with the listing. The company will be listed as WOOF on Nasdaq. Founded in 1965, the company has stores across the U.S., Mexico and Puerto Rico, including a network of more than 100 in-store veterinary hospitals.
This IPO marks Petco’s third foray into the public markets following filings in 1994 and 2000. Petco is controlled by CVC Capital Partners and Canada Pension Plan Investment Board, which acquired the company in 2015 for $4.6 billion. They bought the company from TPG and Leonard Green, who took the then-public pet retailer private 15 years ago.
In a Petco video created for its virtual IPO roadshow, CEO Ron Coughlin and team said that Petco is in the perfect position to beat back rivals in both physical retail stores and eCommerce sales, according to Forbes.
“Many of you may think you already know Petco,” he said in the video, adding that the national chain is now “a radically transformed company that’s redefining the pet care industry.”
He added that the pandemic added 3.3 million new customers. “Those new pets are going to need to be fed, walked and groomed for years to come,” and will be an ongoing sales driver.
The pandemic fueled a drive to online shopping, but eCommerce has been a fast-growing channel for pet products before COVID-19, posting $12.2 billion in 2019.