Poshmark’s shares rose 142% at the market debut, but Petco also took off.

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Poshmark

and

Petco Health & Wellness Co.,

the latest participants in the IPO boom entered the public stock markets on Thursday. Poshmark’s shares rose almost 142%, while Petco gained about 83%.

Poshmark shares (ticker: POSH) opened at $ 97.50 and reached a high of $ 104.98. Shares closed Thursday at $ 101.50, up 141.7%

The strong performance came after Poshmark raised $ 277.2 million after selling 6.6 million shares at $ 42, above its $ 35 to $ 39 price range.

Morgan Stanley, Goldman Sachs and Barclays are the underwriters of the business.

Poshmark operates a market that allows consumers to buy and sell new and used items, such as shoes, clothing and jewelry. The company had 4.5 million active sellers as of September 30, offering more than 201 million used and new items to 6.2 million active buyers. Poshmark charges a 20% fee for sales of $ 15 or more.

Petco also made his debut Thursday, trading on the Nasdaq under the ticker WOOF. The shares opened at $ 26 and rose to $ 31.08. The stock closed at $ 29.40, up 63.33%.

“The IPO exceeded our expectations,” said Petco CEO Ron Coughlin. “Really smart investors believed in our strategy and people. It is an exciting day for Petco. “

The San Diego company raised $ 864 million, more than expected. Poshmark’s IPO raised $ 272.2 million after pricing well above the expected range.

Last Wednesday, Petco, the pet health and wellness company, sold 48 million shares at $ 18 each, up from the $ 14 to $ 17 range investors should expect. Goldman Sachs and BofA Securities are the underwriters of the business.

Petco, which no longer calls itself a retailer, operates about 1,470 pet care centers that sell food, toys and supplies, while offering professional services such as animal hygiene, veterinary care and pet training.

All the proceeds from the IPO will help reduce Petco’s $ 3.24 billion debt, Coughlin said. The company’s debt payment will be cut in half, he said. This will allow Petco to further expand its business, he said.

“There are many opportunities for growth without the need for acquisitions,” said Coughlin Barron’s. Petco’s veterinary business has grown to 105 clinics this year, up from 15 a year ago, while its digital business grew 30% in the third quarter, he said. Same-day delivery comprises 30% of e-commerce orders, said Coughlin.

CVC Capital Partners and the Canadian Pension Plan Investment Board will hold nearly 67% of the company after the IPO. The shares have been publicly traded before, but the company has been closed twice.

The pet care industry has long been considered almost recession-proof, as animals are increasingly seen as members of the family. The industry in 2020 represented more than 72 million households with pets and a total market of $ 97 billion. The Covid-19 pandemic, which has caused an increase in pet adoptions, is expected to help the sector grow by 7% a year by 2024, Petco’s prospect said.

Petco is one of the few end-to-end service providers for pet owners. Its stores offer food, hygiene and training, as well as veterinary services. “Having a pet can be overwhelming,” said Coughlin. “Having to go to one place to prepare, another to train … only Petco can bring it all together in an excellent way.”

Write to Luisa Beltran at [email protected]