Petco Health & Wellness Co. Inc.'s share price is expected to leap another 3% Friday at the Nasdaq open after bounding 63% from its initial public offering number during its first day of trading Thursday.
The stock is expected to change hands for $30.18 early Friday after closing at $29.40 a share Thursday. Its current market valuation is $6.4 billion.
The company listed its shares 44% above its initial public offering pricing - opening at $26 a share. Petco initially pegged the price at $18 per share and raised $816.5 million.
Analysts said the positive response to the listing reflected a growing investor appetite for industries booming as a result of the virus pandemic - such as e-commerce, delivery and pet stocks.
Petco - founded in 1965 - was listed on the stock market in 1994 but was later taken private. The company was eventually bought and resold several times. Petco is currently equally owned by CPP Investment Board and CVC Capital Partners.
The San Diego-based pet-supply retailer operates more than 1,470 stores across the U.S. and Puerto Rico. It has hundreds of stores at veterinary hospitals.
Petco plans to add vet services, chief executive officer Ron Coughlin said earlier. Petco is planning to make improvements in its online business by offering same-day deliveries.
Since the pandemic Petco has experienced an increase in business as North Americans adopt pets. The demand for pet supplies and accessories over the past months inspired Petco to spend big improving its current products and to develop new offerings.
However, competitors are becoming more aggressive. Online rival Chewy reported significant growth over the past year. The company said in its latest earnings call that business had grown by more than 250% over the past 12 months.
Last month, Chewy said, without giving details, it planned to go public in a merger with a special purpose acquisition company.
