Poshmark stock climbed 142% when it debuted, Petco also took off.

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Poshmark

and

Petco Health & Wellness Co.,

the last participants in the IPO boom entered the stock markets on Thursday. Shares of Poshmark climbed nearly 142%, while Petco gained around 83%.

Poshmark stock (ticker: POSH) opened at $ 97.50 and hit 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 price range of $ 35-39.

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

Poshmark operates a marketplace 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 debuted Thursday, trading on the Nasdaq under the symbol WOOF. The shares opened at $ 26 and hit a high of $ 31.08. The action ended at $ 29.40, up 63.33%.

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

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

Late Wednesday, Petco, a pet health and wellness company, sold 48 million shares at $ 18 each, above the $ 14- $ 17 range it had told investors to expect. Goldman Sachs and BofA Securities are the underwriters of the transaction.

No longer known as a retailer, Petco operates approximately 1,470 pet care centers that sell food, toys and supplies, while also offering professional services such as animal grooming, veterinary care and training of pets.

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

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

CVC Capital Partners and the Canadian Pension Plan Investment Board will own nearly 67% of the company after the IPO. The stock has previously been listed on the stock exchange, but the company has been deprived of both times.

The pet care industry has long been seen as nearly recession-proof as pets are increasingly seen as family. The industry in 2020 represented more than 72 million households with pets and a total addressable market of $ 97 billion. The Covid-19 pandemic, which has caused an increase in pet adoptions, is expected to help the industry grow by 7% per year through 2024, according to the Petco prospectus.

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

Write to Luisa Beltran at [email protected]