Petco’s gears are in motion to go public. Officials reported its filing withthe U.S. Securities and Exchange Commission (SEC) on Dec. 3. The number ofshares to be offered and the price range for the proposed offering had notbeen determined as of press time.
In early September, Bloomberg News reported that the owners of Petco wereexploring a sale or initial public offering (IPO) that could value the SanDiego-based retail company at $6 billion, including debt.
This is not the first time Petco has filed for an IPO. Petco had filed for anIPO in August 2015, about nine years after leaving the public marketsfollowing a $1.8 billion acquisition by private equity, MarketWatch reported.But instead of going public, Petco agreed in November 2015 to be acquired byCVC Capital Partners and CPPIB for $4.6 billion, MarketWatch further noted.
For the nine-months ended Oct. 31, Petco reported a net loss of $20.3 millionon sales of $3.58 billion, compared to a net loss of $88.7 million on sales of$3.29 billion in the year-ago period, according to the filing.
The COVID-19 pandemic hurt Petco, according to an article in Barron’s, cuttingoperations in many of its pet care centers.
Even so, Ron Coughlin, CEO of Petco, sounded confident in the company’s pathtoward growth.
“I am pleased to introduce you to a profoundly new Petco that’s redefining thepet care industry and generating a compelling growth trajectory,” Coughlinsaid in the filing statement.
As to the pandemic, Coughlin commented, “We’ve seen the total addressablemarket grow significantly this year, and demand for new pets shows no sign ofwaning. Suffice it to say, our business was strong before the pandemic,accelerated during the pandemic, and we expect it to continue to grow at anaccelerated rate long after the pandemic passes.”
As of Oct. 31, Petco officials said they had served more than 21 millionactive customers, with members of its Pals loyalty program representing about80 percent of its transactions in the first three quarters of fiscal 2020.
Petco officials have applied to list its common stock on the Nasdaq GlobalSelect Market under the ticker symbol WOOF. Goldman Sachs & Co. LLC and BofASecurities are lead underwriters of the deal.
Source: Pet Product News
Previous Pets returning to workplaces to share the love!
Next What’s a Better Bet, Bitcoin or a Cockapoo?