The market for initial public offerings (IPOs) is off to a strong start in 2021.
Shares of Petco Health and Wellness (NASDAQ:WOOF)jumped 63% in the animal supply chain store’s return to the market Thursday after raising $864 million U.S. in its IPO.
Shares of Petco closed at $29.40 U.S. in New York trading, giving the San Diego-based company a market value of $6.4 billion U.S. Petco sold 48 million shares for $18 U.S. each after marketing them for between $14 U.S. to $17 U.S.
Petco will continue to be controlled by its largest investors, including private equity firm CVC Capital Partners and Canada Pension Plan Investment Board. They acquired Petco for $4.6 billion U.S. in 2016.
Also on Thursday, Poshmark (NASDAQ:POSH), the online marketplace for second-hand goods, rose 142% in its trading debut after raising $277 million U.S. in an IPO priced above the marketed range.
Shares of Poshmark closed at $101.50 U.S. in New York trading, valuing the Redwood City, California-based company at $8.5 billion U.S. on a fully diluted basis including options and restricted stock units. The company sold 6.6 million shares for $42 U.S. each, after marketing them for $35 U.S. to $39 U.S.
The Petco and Poshmark IPOs followed Affirm Holdings, the online consumer lender whose shares almost doubled on its trading debut Wednesday after raising $1.2 billion U.S. in its IPO. Affirm’s share price rose further on Thursday.
