Shares of Petco Health and Wellness (WOOF) opened at $26 each on Thursday, about 44% higher than the company’s IPO price. The stock was trading as high as 55% during the first minutes after its public debut.
On Wednesday the pet care company sold 48 million shares for $18 each, raising $864 million.
The IPO follows payment platform Affirm’s (AFRM) public debut on Wednesday. Shares of Affirm spiked more than 90% on their first day of trading.
Petco has been around since 1965 and has undergone major shifts over the last several years. In 2018 the company announced it would no longer sell dog and cat food and treats that contain artificial ingredients. Last October it removed shock collars from its shelves.
“We’ve seen the total addressable market grow significantly this year, and demand for new pets shows no sign of waning. Suffice it to say, our business was strong before the pandemic, accelerated during the pandemic, and we expect it to continue to grow at an accelerated rate long after the pandemic passes,” states the company’s S-1 filing.
During the pandemic Petco implemented curbside pickup during the pandemic and e-commerce boomed as people stayed at home during the lockdowns.
“We are the pharmacy. We are the drugstore. We are the supermarket for pets,” CEO Ron Coughlin told Yahoo Finance during the pandemic last year.
The pet health and wellness company has served over 21 million active customers as of October 30th, according to its filing.
“Our digital business has been growing at a strong rate since 2019 and is gaining share with millions of new customers flocking to our unique digital capabilities on both Petco.com and the Petco mobile app,” said the filing.
Comparing the first thirty-nine weeks of Fiscal 2020 and Fiscal 2019, Petco increased net sales from $3.29 billion to $3.58 billion, representing period-over-period growth of 9.0%. It’s comparable sales grew 9.6% over the same period.
The company reported an increase in Adjusted EBITDA from $292.6 million to $335.7 million, representing period-over-period growth of 14.7%.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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