Start the conversation
The pet supplies retail chain filed with the U.S. Securities and Exchange Commission for a $100 million deal. However, that figure is just a placeholder for filing purposes. According to Renaissance Capital, a manager of IPO-focused ETFs, the Petco IPO could raise up to $500 million. That would value the company at $5 billion.
The Petco IPO date will come less than 10 years after Petco stock stopped trading. In 2006, Petco was bought out for $1.8 billion by private equity firms TPG Capital and Leonard Green Partners. The Petco IPO filing states that TPG currently owns about 47% of the company, while Leonard Green owns 38%.
The chain has benefited from a sharp spike in spending on pets recently. The company said in its filing that American spending on pet supplies will hit $76.6 billion in 2015. That's up 22% from $62.7 billion in 2010, despite the percentage of U.S. households with pets remaining near 54% over the same time period.
The company booked a profit of $75.3 million last year, constituting 1.9% of its net sales. That represents a slight decline from a 2013 profit of $84.8 million, or 2.2% of net sales.
Now that we know the Petco IPO's initial details, investors are wondering if they should invest when the Petco IPO date rolls around…