Two new stocks will begin trading today: pet care leader Petco Health & Wellness (NASDAQ:WOOF) and online used-clothing marketplace Poshmark (NASDAQ:POSH). Both companies priced their offerings above expectations, indicating the IPO boom still has legs.
Barking up the right tree
This is Petco’s third trip to the public markets, though it’s been 15 years since investors were last able to trade the stock.
The pet supplies retailer operates over 1,500 stores in the U.S., Puerto Rico, and Mexico, offering pet care products, veterinary services, an online store, and online health advice called PetCoach.
Through the end of October, it notched over $3.5 billion in revenue, up 9% year over year, on a 9.6% jump in comparable store sales.
Petco priced its 48 million share offering of Class A stock at $18 per share, beating the $14 to $17 per share expected range for the IPO. Petco also granted the underwriters a 30-day option to purchase an additional 7.2 million shares.
Smart sense of fashion
Poshmark is new to the public markets. It was supposed to IPO well over a year ago, but pulled the offering as the markets turned a cold shoulder to all the fashion retailers that went public at the time, such as Farfetch, Levi Strauss, and StitchFix.
Poshmark priced its latest offering at $42 a share, ahead of the $35 to $39 range forecast, as e-commerce during the global pandemic took off.
The fashion site isn’t a retailer, but rather a marketplace like eBay where other members can sell their goods. It generated $192.8 million in revenue through September, up 28% from the previous year, according to its IPO filing.
Petco will trade under the ticker WOOF; Poshmark under POSH. Both will be on the Nasdaq exchange.
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