Petco will file its initial public offering (IPO) with a valuation of almost $4 billion, according to a registration statement filed with the Securities and Exchange Commission (SEC) Wednesday (Jan. 6).
That will come with a price-per-share of $14 to $17.
Petco has done well amid the pandemic, as people stuck at home during quarantine and afterward have needed supplies to help care for their pets. In September, PYMNTS reported that the market, like many others, was beginning to shift into a digital mode for more eCommerce ability, according to Chief Digital and Innovation Officer Darren MacDonald.
eCommerce was a fast-growing channel for pet-related shopping even before the pandemic, making $12.2 billion in 2019, with 66 percent of that number used to pay for pet food. There weren’t any hard numbers at the time of the report on how this had changed during the pandemic, but anecdotal reports said the increases continued as people sought comfort during the strange times.
The company, as such, set its sights on going public in December.
The number of households with pets went up 4 percent in 2020 alone, PYMNTS reported, and new pet owners account for around $4 billion in new demands for items like food and accessories.
In 2019, Petco saw its shares go up 9 percent and hit $3.58 billion. In 2020, same-store sales spiked by 9.6 percent. The chain was coming off a spate of losses the two years prior, having also narrowed the losses by 77 percent, hitting $20.3 million.
The SEC registration statement outlined how the industry is responding to the pandemic, forecasting that the demand for pet supplies will boost the industry to grow 5 percent to 7 percent by 2024.
Petco also said it will continue to expand its digital business, the filing shows, in particular the buy online, pick up in store (BOPIS) feature. The company will also work on connecting the online platform with its in-store services like grooming and training, which will create a “flywheel” to boost store and online visits, the statement showed.