Petco Stock Jumps In Debut After Third IPO Prices Above Forecasts

Petco stock soared in its trading debut Thursday after its initial public offering prices above forecasts late Wednesday.




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The pet supply retailer raised $864 million from its IPO after selling 48 million shares at $18 each, above the expected range of $14-$17. At that price, the company’s market valuation tops $4.6 billion.

Petco Health and Wellness (WOOF) will join the Nasdaq under the ticker symbol WOOF. Goldman Sachs and Bank of America are the lead banks for the IPO.

Shares jumped 63% to 29.30 on the stock market today, hitting 31.08 intraday.

The isn’t the first time Petco has made a public debut. It first went public in 1994 before going private in 2000. Then it went public again in 2002 before going private again in 2006.

More pet-focused IPOs are on the way in 2021. BarkBox, a popular monthly subscription service for dogs, is expected to go public via a merger with Northern Star Acquisitions, a blank-check company, in the second quarter. It will be listed on the New York Stock Exchange under the ticker BARK.


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Pet ownership has boomed during the Covid-19 pandemic as Americans went on adopting sprees. Shelter Animals Count, a database that follows 500 shelters around the U.S., said adoptions rose 15% in 2020 vs. 2019.

Americans also spent more money on their pets last year. A LendingTree poll in October found that 1 in 3 pet owners increased spending on their pets during the pandemic even as unemployment rose and other types of spending fell.

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The trend has lifted other pet stocks like Chewy (CHWY) and Freshpet (FRPT), while PetMed Express (PETS) and PetIQ (PETQ) have been more mixed.

Chewy stock rose 1.9% Thursday after surging 8% Wednesday. Freshpet climbed 2.1%.

Follow Gillian Rich on Twitter for investing news and more.

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View more information: https://www.investors.com/news/petco-stock-ipo-pricing-woof/

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