Peloton targets $8.1 billion valuation ahead of IPO

Here are the key things we’ve learnt from Peloton’s updated S-1 filing: including an expected share price range and the number of shares set to be offered as part of the IPO.

Key facts of the upcoming Peloton IPO

With Peloton lodging an updated S-1 Form with the SEC this Tuesday, the market has gained further insight into Peloton’s upcoming initial public offering.

On the upper-end of the intended public offering, the fast-growing fitness company would raise as much as $1.16 billion.

As part of the raise, Peloton intends to offer 40 million shares of Class A Common stock. As per the company’s S-1 filing, the price-range of these shares is expected to come in at between $26 to $29 per share.

According to Bloomberg:

‘A listing at the top of that range would value Peloton at about $8.1 billion based on the shares to be outstanding as listed in its filing.’

The $8 billion question

It will be interesting to see how investors respond to an implied valuation in excess of $8 billion.

For reference, Peloton – in its S-1 filing – reported FY19 revenues of $915 million, a total of 511,000 connected fitness subscribers, and net losses of $195 million.

While the company has seen its connected fitness subscribers increase 374% since FY17, it has also seen its net losses rise significantly in that same period.

Such losses however, investors would do well to remember, are not uncommon for early-stage tech companies such as Peloton.

The year of the IPO

Ultimately, it’s been an interesting year for IPOs, with a number of high-flying names already listing. Uber, Slack and Lyft all went public in 2019 with much initial fanfare.

Practise trading Uber, Lyft and other tech stocks with an IG demo account now

In saying that, the frothy valuations of these companies have also drawn an often negative focus from investors, speculators and the media at large.

Uber has seen its share price thrashed since listing, and WeWork – a hotly anticipated, and hotly criticised IPO – has seen its valuation come under pressure ahead of its own public offering.

A number of media outlets for example reported that one of WeWork’s key backers, SoftBank, was allegedly pushing back against the IPO.

How Peloton will fare in the public markets is anyone’s guess.

Regardless, the company is poised to kick-off its IPO roadshow this Wednesday, with presentations set to take place in both London and Frankfurt, according to Bloomberg.

An official IPO date has yet to be set.

Peloton will list under the ticker symbol PTON on the NASDAQ.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.