Petco Animal Supplies, Inc or simply Petco, a California-based pet retailer founded in 1965 with 1,500 locations has announced it will go public. There are 13 banks underwriting the IPO.
The retailer is planning on listing 48 million shares at a price range of $14-$17. The high end of that range would value the company at $4.4 billion. Petco will be listed on Nasdaq under the ticker symbol “WOOF”.
Proceeds from the offering are going to be used to pay the accrued interest on its floating rate senior notes and to redeem the $300 million remaining principal. The company’s $3.3 billion in debt compared to $3.5 billion in revenue has caused the company to seek opportunities to lower its debt load.
Petco was previously listed from 1994 to 2000 and from 2002 to 2006. Petco was sold for $4.6 billion to CVC and CPPIB in 2016.
Increased appetite for IPOs in 2020 and the stellar performance of its listed competitor, Chewy (CHWY), which is up 226% in the last year, opened the way for a potentially successful IPO.