Pet products retailer Petz shares rise in Brazil stock market debut

Petz is one of a raft of Brazilian retailers to announce new share offerings in 2020 despite the economic crisis caused by the coronavirus pandemic. Its IPO was the biggest in Brazil so far this year, according to stock market operator B3 SA, raising 3 billion reais ($567 million) two days ago.

Shares in Brazilian pet products retailer Petz were up 7% to 14.72 reais in mid-morning trading in its debut on Brazil's stock market after pricing the year's largest initial public offering.

The benchmark Bovespa index was down 0.5%. Petz is one of a raft of Brazilian retailers to announce new share offerings in 2020 despite the economic crisis caused by the coronavirus pandemic.

Its IPO was the biggest in Brazil so far this year, according to stock market operator B3 SA, raising 3 billion reais ($567 million) two days ago. At the start of Friday trading, shares in Pet Center Comercio e Participacoes SA, as the retailer is formally known, rose as much as 10%.

Controlled by Warburg Pincus, Petz will use proceeds raised to open new stores and veterinary hospitals in Brazil, the world's third largest pet market, according to Euromonitor. It currently operates 110 stores in the country.

Petz's sales rose by 36.6% in the first half of the year to 731.6 million reais, as it opened new stores and increased on-line sales during the pandemic. ($1 = 5.2946 reais)

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