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Summary
- The company is in the business of pet care for 45 years and has 609 stores across Canada.
- The Canadian pet care industry reportedly grew at a compound annual growth rate (CAGR) of six per cent from 1994 to 2016.
- Find out how to buy PET stocks in this article.
Update: Pet Valu Holdings Ltd., one of the largest pet food and accessory retailers in the country, returned to the equity market on Thursday, June 24, after pricing its shares at C$ 20 apiece.
The company shares can be found on the Toronto Stock Exchange under the ticker PET.
Pet Valu Holdings Ltd., one of the largest pet food and accessory retailers in the country, might soon make its debut on public markets.
The Ontario-based business recently filed its preliminary prospectus, and is reportedly eyeing the public debut to reduce its debt load and capitalize on the growing pet care industry.
The pandemic-triggered lockdown has seen an increasing amount of people choosing to adopt pets. According to a report released in March 2021, 64 per cent of Canadian households owned at least one pet, of which 41 per cent were devoted pet lovers.
The initial public offering will likely raise at least C$275 million. Following the public debut, the share prices jumped 32.5 per cent to close at C$ 26.5 per share.
Pet Valu will trade at the Toronto Stock Exchange under the ticker ‘PET’. The Ontario-based business opted for a public debut as it reportedly wants to reduce its debt load and capitalize on the growing pet care industry.
The pandemic-triggered lockdown has seen an increasing amount of people choosing to adopt pets. According to a report released in March 2021, 64 per cent of Canadian households owned at least one pet, of which 41 per cent were devoted pet lovers.
Pet Valu Holdings Ltd. IPO – Key details
The company is said to have been in the business of pet care for 45 years, and presently holds some 609 stores across Canada. Pet Valu reportedly wants to add about 25 to 35 more stores this year and enhance its operating margin.
Pet Valu generated a revenue of C$ 648 million in 2020, up from that of C$ 574 million in 2019, as per its IPO prospectus. Its net income, on the other hand, spiked four per cent year-over-year (YoY) to C$ 29 million in 2020.
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Pet Valu also saw its free cash flows surge 76 per cent YoY to C$ 109 million last year, while its adjusted EBITDA increased by 22 per cent YoY to C$ 144 million.
The company estimates that the Canadian pet care industry grew at a compound annual growth rate (CAGR) of six per cent between 1994 and 2016, 9 per cent CAGR between 2016 and 2020, and 10 per cent CAGR between 2019 and 2020. Being a rapidly evolving sector, Pet Valu is likely to grow further in the coming years.
Those seeking to invest in Pet Valu can enter the ticker name on their brokerage platform, select the quantity of shares and place the order.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
