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01/06/2021

Petco looks to raise nearly $700 million with IPO

Marianne Wilson
Editor-in-Chief
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Petco Health and Wellness has set the terms for its initial public offering.

The pet supplies retailer is planning to offer 48 million shares of class A common stock priced at $14 to $17 each. Petco stock will be listed on Nasdaq under the ticker 'WOOF.'

Petco expects to generate $699.4 million of net proceeds from the offering based on a $15.50 per share pricing. The retailer is planning the proceeds to pay the accrued interest on floating rate senior notes and to redeem the $300 million remaining aggregate principal.

This is not the first time that Petco, which is owned by private equity investors CVC and CPPIB, has gone the IPO route. The company first went public in 1994, but then went private in 2000 when it was acquired by TPG and Leonard Green in a $600 million deal. It went public again in 2002, but TPG and Leonard Green took it private again in 2006 in a $1.7 billion deal. They sold it to CVC and CPPIB for $4.6 billion in 2016. 

Petco operates more than 1,500 locations across the U.S., Mexico and Puerto Rico, including more than 100 in-store veterinary hospitals.