Petco Health & Wellness Company,
The latest participants in the IPO boom entered the public equity markets on Thursday. Poshmark’s shares rose nearly 142%, while Petco gained nearly 83%.
Poshmark (ticker: POSH) stock opened at $ 97.50 and hit a high of $ 104.98. The stock closed at $ 101.50, up 141.7% on Thursday.
Poshmark had a strong performance after collecting $ 277.2 million, selling 6.6 million shares for $ 42 million, ranging in price from $ 35 to $ 39.
Morgan Stanley, Goldman Sachs and Barclays are the underwriters on the deal.
Poshmark operates a marketplace that allows consumers to buy and sell new and used items such as footwear, clothing and jewelry. The company had 4.5 million active sellers as of 30, offering new items to more than 201 million secondhand and 6.2 million active buyers. Poshmark charges 20% of sales which are $ 15 or more.
Petco made its debut on Thursday, which trades on the Nasdaq under the ticker WOOF. The stock opened at $ 26 and reached a high of $ 31.08. The stock closed up 63.33% at $ 29.40.
“The IPO has exceeded our expectations,” said Petco CEO Ron Coughlin. “Really smart investors believed in our strategy and people. This is an exciting day for Petco. “
The San Diego company raised more than $ 864 million as expected. Posmark’s IPO collected $ 272.2 million after pricing it over the limit, which was expected.
Late Wednesday night, Petco, a pet health and wellness company, sold 48 million shares at a price of $ 18, above the $ 14 to $ 17 range it had expected from investors. Goldman Sachs and BofA Securities are the underwriters on the deal.
Petco, which no longer calls itself a retailer, operates about 1,470 pet-care centers, which sell food, toys and supplies, providing professional services such as animal husbandry, veterinary care and pet training.
All proceeds from the IPO are intended to help reduce Petco’s debt burden of $ 3.24 billion, Coughlin said. He said that the company’s debt payments will be cut. He said that Petco will carry on its business.
“There are a lot of growth opportunities without making acquisitions,” Coughlin explained Baron’s. He said Petco’s animal business has grown to 105 clinics this year from 15 a year earlier, while its digital business jumped 30% in the third quarter. Same-day delivery comprises 30% of e-commerce orders, Coughlin said.
CVC Capital Partners and the Canadian Pension Plan Investment Board will own approximately 67% of the company after the IPO. The stock has previously been publicly traded, but the company was taken private both times.
The pet care sector has long been considered a recession proof as pets are seen as family members. The industry represented more than 72 million households with pets and a total addressable market of $ 97 billion in 2020. Petco’s prospectus said the Kovid-19 pandemic, which has led to an increase in pet adoptions, is expected to help the region grow 7% annually through 2024.
Petco is one of the few end-to-end service providers for pet owners. Its stores provide food, grooming, and training, as well as vet services. “A pet can be heavy,” Coughlin said. “Going to a place to prepare, another place for training … Only Petco can bring those people together in a great fashion.”
Write Louisa Beltran at [email protected]