Petco soars 73% in first day of trading after raising $817 million

Petco soared in its first day of trading on Thursday, leaping as much as 72% in initial trades after raising $US817 million in proceeds. The company priced its IPO at $US18 per share and sold 48 million shares.

The Pet Care company operates about 1,470 pet-care centres that sell food, toys, and supplies for a range of pets. The company also offers proffessional services like grooming, vet care and pet training.

Thursday’s IPO marks a return to the public markets for Petco. The company was acquired by CVC Capital Partners in 2015 for $US4.6 billion. CVC will continue to own 67% of the company.

The strong debut of Petco is a continued signal the the IPO frenzy of late 2020 is spilling over into 2021. On Wednesday, Affirm soares more than 100% following its trading debut.The online instalment lender is up 160% in just a two-day period. Online retailer Poshmark also soared 150% on Thursday in its first day of trading.

On top of the investor hype towards IPOs in recent months, the timing could be good for Petco’s public return to the markets as the COVID-19 pandemic has led to a surge in pet ownership in the US.

Petco is listed on the Nasdaq Exchange under the ticker symbol “WOOF.”

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