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.

Pelton IPO in focus Source: Bloomberg

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.

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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.


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