Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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 spread betting and CFDs.

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