Peloton Aims To Raise Up To $1.16B In IPO

In a regulatory filing, Peloton said it aims to raise up to $1.16 billion in its initial public offering (IPO). The company, which is famous for its connected fitness equipment, is looking to price its shares in a range of $26 to $29, CNBC reported.

The company, which sells fitness equipment such as stationary bikes and treadmills, filed its initial prospectus in August. While the company’s revenue is increasing, its losses are said to be broadening. Peloton reported that its sales increased from $435 million to $915 million in fiscal 2018, and its 2019 net loss broadened to $245.7 million from $47.9 million the year before.

Peloton will list its shares under the PTON ticker symbol, and reportedly expects to trade on the Nasdaq. The company is said to be offering 40 million shares. That would value the company at $8.06 billion at the high end of the $26 to $29 per share range.

Peloton was reportedly the first to combine bikes and treadmills with screens that allow users to take part in fitness classes with others from their own locations. Per past reports, the company aims to enable people at to have an at-home workout experience “as physically rewarding and addictive as attending a live, in-studio class.”

Peloton’s subscription base went up to 511,202 from 245,667 in one year. The company has said in the past that it has 1.4 million members. Active users do seem to use the service consistently and actually increase their workout frequency. Subscribers who participate regularly complete an average of 11.5 workouts a month, marking an increase from 8.4 last year and 7.5 two years ago. The company said it has had a 95 percent retention rate of fitness subscribers since 2016.

For people who don’t want to invest in the equipment, Peloton offers digital memberships for approximately $19 per month. It is said to have 102,000 of these types of subscribers.