Is Petco's IPO a Buy?
Petco Animal Supplies may be going public again after confidentially filing with the Securities and Exchange Commission its plans for an initial public offering (IPO).
Although the private equity owners of the pet supplies leader previously pursued a buyout, the IPO may be a better route to achieve the $6 billion valuation they are reportedly seeking. The market has been friendly toward IPOs of late, and pet care in general has benefited from the panic buying of pet food and supplies brought on by the pandemic.
Yet competition remains intense, and rival retailer Pet Valu, which is also owned by private equity investors, just announced it was ending operations at all 358 stores and warehouses due to struggles encountered during the pandemic. As Petco has also struggled despite being deemed an essential business, let's see whether its IPO would result in it becoming a flea-bitten stock or an investor's best friend.
Source Fool.com
