Peloton: Fitness start-up seeks to raise $1.3bn in market debut

Fitness start-up Peloton plans to raise up to $1.3bn (£1.1bn) in an initial public offering, the latest loss-making firm gearing up for its market debut.

The US company sells expensive stationary bikes and provides on-demand workout sessions.

Peloton said it would price shares at up to $29, giving it a potential market valuation of more than $8.2bn.

The planned Nasdaq listing follows disappointing debuts from Uber and Lyft.

Founded in 2012, the New York-based company sells fitness equipment – with bikes priced at around $2,000 – fitted with touchscreens.

Users then purchase a subscription to access classes streamed live and on-demand. The firm said it has more than 1.4 million members.

“On the most basic level, Peloton sells happiness,” founder John Foley previously said.

In a regulatory filing, the firm said it plans to offer 46 million shares, priced between $26 and $29 per share. That would give the company a market value of up to $8.2bn.

Peloton’s most recent earnings report showed a rise in revenues but the company fell short of turning a profit.

For the year ended 30 June, revenues more than doubled to $915m while its net loss widened $195.6m from $47.9m.

Media playback is unsupported on your device

The planned listing comes on the heels of several high-profile US stock debuts.

Uber and Lyft both went public this year but drew criticism over their heavy losses.

WeWork’s stock market debut – one of the most hotly anticipated financial events of the year – is also in doubt.

The company rents office space for the long-term, subletting that space to firms and individuals on more flexible lease terms.

Uber shares sink on stock market debut WeWork stock market debut in doubt

SoftBank, the Japanese investment firm that owns about 30% of WeWork, has reportedly urged the property company to drop

Read More Here...

Bookmark the permalink.