The pet industry eyes the stock market in 2026: Can IPOs revive growth?
by Thaís Matos
With declining acquisition multiples and slower deal activity, public listings are becoming a more attractive route for investors and founders.
Recent developments in the pet market suggest a possible surge in initial public offerings (IPOs) in 2026.
In Poland and Japan, 2 pet players were listed on the stock exchange in recent months. Meanwhile, companies owned by private equity (PE) firms and investors in Canada and the UK are considering going public.
Japan
On 23 April, Japanese pet food manufacturer Inuneko-Seikatsu launched on the Tokyo Stock Exchange. The Tokyo-headquartered company is listed on the Growth Market, dedicated to startups and small companies. The listing was approved one month before, and the company said it would be an opportunity to further expand the business.
Beyond producing food and supplements for dogs and cats, it also operates an animal hospital and a grooming salon. Before the IPO, the company was owned by the Maezawa Fund, from Yusuke Maezawa, founder of online retailer and marketplace Zozotown.
Between April 2025 and April 2026, sales increased 52% to ¥4.4 billion ($28M/€24M).
Poland
Similarly, Polish technology firm Farm Innovations launched on NewConnect, an organized market operated by the Polish Stock Exchange that targets young, growing companies.
According to company President Sebastian Przeniosło, the listing came to “fulfill a promise made to investors who naturally expect liquidity for their assets.” It aims to increase the company’s access to capital to scale advanced animal identification, combined with insurance products, in foreign markets.
Over the last 2 years, the tech firm has focused on selling simplified animal-monitoring solutions based on identification chips, thermochips, and supporting infrastructure such as readers, Przeniosło tells GlobalPETS.
Another part of its business concerns data-driven animal insurance products. This is achieved through integration with monitoring technology to better reflect risk, support prevention and improve animal welfare.
“We combine our competencies in animal data and health with the experience and regulatory expertise of specialized insurance entities in cattle, horses and the pet segments,” he explains.
End of investment cycle
At the end of 2025, a report published by investment bank Cascadia Capital listed at least 8 companies acquired by PEs in the early 2020s that could be sold as the investment cycle approaches its end, typically after 7 years.
Among them was the pet food manufacturer Open Farm. In late April, the news agency Reuters reported that the company was preparing for an IPO on the Toronto Stock Exchange this year, with investment banks Goldman Sachs and RBC Capital Markets advising it.
Open Farm received a $65 million (€48.5M) minority investment by growth equity firm General Atlantic in 2021, while already having the private equity firm Encore Consumer Capital as a minority partner.
Since then, the pet food producer received B Corp certification in 2024 and invested in its digital strategy, including direct-to-consumer growth. In January, it made executive changes, appointing John Winer as Chief Digital Officer, Maria Chilewicz as Vice President of Marketing and Trevor Koons as Vice President for Growth.
Cascadia’s list of potential companies going back to the market includes Brightpet, Native Pet, Carnivore Meat Company, Nulo, The Honest Kitchen, Compana Pet Brands, and Primal Pet Foods. The latter was indeed divested, but not through an IPO. It was instead acquired by Canada-based Pure Treats in February 2026 for an undisclosed amount.
While this acquisition offers no clues about the profitability of PE investment cycles, another deal made in 2025 does.
Last year, the investment firm 3i Group sold British pet food producer MPM Products, which it acquired in 2020, to the Swiss-based private equity firm Partners Group. The company has achieved a 3.2x multiple of invested capital, with an internal rate of return (IRR) of 29%.
British speculation
Earlier this year, the Financial Times reported that the global provider of veterinary care, IVC Evidensia, is in talks with advisers to study a multibillion-pound IPO. To GlobalPETS, a spokesperson for the UK-based company said only that “IVC Evidensia regularly considers options to fund its long-term growth.”
The veterinary company is controlled by the Swedish private equity firm EQT. Despite being headquartered in the UK, IVC is considering going public in London or another stock exchange in 2027, according to the report.
The veterinary services provider operates more than 2,500 clinics and hospitals across Europe and North America, as well as an online pet pharmacy. According to investment research firm Morningstar, the company was valued at over €12 billion ($13.7B) during a 2021 fundraising.
Smaller investments
A recent analysis by the investment banking and M&A advisor R.L. Hulett showed a decrease in the median EV/EBITDA multiple (the ratio of enterprise value to earnings before interest, taxes, depreciation and amortization) when both PEs and other companies acquire pet businesses.
For reported private equity deals, this ratio fell from 16.8x in 2024 to 9.9x in 2025. And for strategic deals (not from investors), it went from 13x in 2024 to 8.1x last year.
Lower ratios mean investors are paying less for pet companies, which could either delay divestments or make options – such as IPOs – more attractive.
A tough decision
“Many 2020 to 2022 vintage sponsors are facing a tough decision: exit into a softer multiple environment or extend hold periods via continuation vehicles, dividend recaps or add-ons,” Dax Kugelman, R.L. Hulett’s analyst, tells GlobalPETS.
According to the analyst, investors are turning to the second option, which is contributing to slower deal volumes registered in 2025, as PE buyers went from 61.3% of transactions in 2024 to 51.8% in 2025.
“Assets that scaled organically through the humanization tailwind are still exit-ready; those that levered up at peak multiples and relied on multiple expansion are the ones getting held longer,” he adds.
Furthermore, the gap between the premium and standard segments has narrowed, Kugelman says. “In private M&A, premium and functional nutrition brands continue to draw above-median interest, but buyers are underwriting more conservatively than they were 18 months ago.”
Although market conditions remain cautious, the combination of this slowdown in deal activity and the maturation of private equity investments could spur additional IPOs in the sector.
