Petco IPO raises $817 million
Petco, a San Diego-based pet supplies and services company owned by CVC Capital Partners and CPPIB, raised $817 million in its IPO.
Why it matters: The company priced above its expected range, $18 vs. $14–$16, reflecting how the public markets just can't get enough of companies that cater to the cuddly fuzzballs.
- Just look at Chewy, which went public last summer at a $9 billion valuation and is now worth over $46 billion.
- Or the 44% post-IPO bump for Northern Star Acquisition Corp., the SPAC that last month agreed to buy Barkbox. Plus, Petco has the best ticker symbol so far this year (WOOF).
The bottom line: "Petco, which no longer calls itself a retailer, operates about 1,470 pet-care centers that sell food, toys and supplies, while offering professional services like animal grooming, vet care and pet training. The company is highly leveraged and has about $3.24 billion in debt. CVC and CCPIB will own nearly 67% of the company after the IPO," Barron's Luisa Beltran reports.