San Diego pet retailer Petco surges 63% in Nasdaq debut, valued at over $5bn



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San Diego pet retailer Petco surges 63% in Nasdaq debut, valued at over $5bn

Petco Health and Wellness Co Inc, a San Diego, California-based American pet retailer, had skyrocketed nearly 63 per cent at its Nasdaq debut on Thursday, proffering one of the world’s largest pet retailer a market valuation of $5.69 billion.

In point of fact, Petco shares had opened up the day at $26 apiece, roughly 44.4 per cent higher than its IPO pricing of $18 per share, however, had hit a session-high of $31.09 per share before wrapping up the day at $29 per share.

Besides, a day earlier, the American pet retailer had offered about 48 million ADSs (American Depository Shares) at its Initial Public Offerings and raised a stark upsum of $864 million. More interestingly, a Nasdaq-debut of the Californian pet retailer came forth just three months after the company owner, Canada Pension Plan Investment Board alongside CVC Capital Partners, had been mulling a potential sell-off of the company for $6 billion, however, as a slew of companies seemed to be racing to jump on the bandwagon of the strongest US IPO market in nearly five years, the San Diego-based pet retailer having had 1,470 brick-and-mortar pet care centres across the United States, looked to cash in on a US IPO boom following a lacklustre 2020.

San Diego pet retailer Petco shares torrent 63% in Nasdaq debut

Apart from that, in what had been the third public market entrance for the Californian pet retailer, Petco wrapped up the day at $29.09 per share as beforementioned, while its first public market debut had taken place back in the 1994s, but the company had been taken private in 2000.

In tandem, Petco was taken public again in 2002, but the pet retailer went private in 2006. Concomitantly, Petco, which the CVC and Canadian Pension Plan Investment Board had purchased back in the 2016s from TPG Capital LP alongside Leonard Green & Partner LP at a $4.6 billion buyout deal, had reported a $24.8 million in net losses for its third fiscal quarter that ended on October 31, a regulatory filing with US SEC (Securities and Exchange Commission) had revealed.