IPO Plans: Petco Aims for $816M and Poshmark Seeks $257M

IPOs are on tap: Petco’s would put its market valuation at as much as $4.4 billion and Poshmark’s at $2.9 billion.
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Petco Health & Wellness and Poshmark filed financial details of their planned initial public offerings with the Securities and Exchange Commission on Wednesday.

The San Diego pet-supply retailer seeks to rake in as much as $816 million from its IPO, while Poshmark, the Redwood City, Calif., Internet fashion marketplace, is looking for as much as $257.4 million. 

Petco intends to sell 48 million shares at $14 to $17, and Poshmark expects to sell 6.6 million shares at $35 to $39.

The high end of estimates would put Petco’s market valuation at $4.4 billion and Poshmark’s at $2.9 billion.

Both plan to list on Nasdaq, Petco under the ticker symbol WOOF and Poshmark under POSH.

IPOs have been on fire during the covid pandemic, as investors and traders are manic about finding decent returns with interest rates near zero. 

The Renaissance IPO ETF  (IPO) - Get Report recently traded at $63.89, down 1.7%, but has a bit more than doubled over the past year.

Petco says the pet-care market has grown at a 5% compounded annual rate since 2008.

It expected the number of households with pets would grow 4% in 2020, which could create as much as $4 billion in new demand for pet-care products.

For the nine months through Oct. 31, Petco posted a net loss of $20.3 million, narrowed from a loss of $88.7 million in the year-earlier period. Revenue reached $3.59 billion from $3.29 billion a year earlier.

As for other companies planning IPOs, Affirm Holdings, the San Francisco installment lender for online purchases, filed Tuesday for an offering to bring in up to $935 million.