The owner of the animal supply chain store Petco raised $864 million in an initial public offering, returning the retailer to the public market 15 years after it was taken private.
The company, which is changing its name toPetco Health and Wellness Co. in conjunction with the listing, sold 48 million shares for $18 each, according to astatement. The private equity-backed company had marketed the shares for $14 to $17.
After the IPO, Petco will continue to be controlled by its current owners, which includeCVC Capital Partners andCanada Pension Plan Investment Board. They acquired Petco for $4.6 billion from TPG and Leonard Green in 2016, a decade after those two firms took Petco private.
San Diego-based Petco has grappled with challenges including rising competition and disruptions to consumer spending amid the coronavirus pandemic.
Petco operates about 1,500 stores across the U.S., Puerto Rico and Mexico, according to its filings. Some offer pet care services, veterinary advice and vaccination clinics, and the company also has a digital health service.
Petco had a net loss of $25 million on net sales of $3.58 billion for the 39-week period ended Oct. 31, according to its filings.
The offering is being led byGoldman Sachs Group Inc. andBank of America Corp. The shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol WOOF.
— With assistance by Crystal Tse
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