Petco has filed for an IPO as customers undertake extra pets in the course of the pandemic
Pedestrians cross a street in front of a Petco Animal Supplies Inc. store in New York, United States on Wednesday, September 9, 2020.
Angus Mordant | Bloomberg | Getty Images
Petco Health and Wellness has filed an S-1 for an IPO as pet consumer spending soars during the coronavirus pandemic.
The retailer has not yet disclosed the number of shares available or the prices for its IPO. It is planned to be listed on the Nasdaq with the ticker “WOOF”.
The company noted on its file that the number of households with pets is expected to increase by 4% this year alone due to the pandemic. The rise in ownership results in a new $ 4 billion demand for pet care products.
Chewy, PetSmart’s online business that went public more than a year ago, saw its shares surge more than 150% that year to a market value of $ 30.3 billion.
For the ten months ended October 31, 2020, Petco’s net sales increased 9% to $ 3.58 billion compared to the same period last year. Revenue in the same store has risen 9.6% so far this year.
Petco is also improving its profitability after reporting net losses in 2018 and 2019. For the first 10 months of 2020, the company recorded a net loss of just $ 20.3 million, reducing losses by 77% from the year-ago period.
Over the past three years, Petco has invested $ 300 million to modernize its business, including building an e-commerce website and building a full-service network for veterinary hospitals.
Petco, which was founded in 1965, was last listed on the stock exchange in 2006. The company nearly went public five years ago, but was instead acquired by private equity firm CVC Capital Partners and the Canadian Pension Plan Investment Board for $ 4.6 billion.
Read the full S-1 file here.