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

Part of a Peloton gym bicycle
Image copyrightGETTY IMAGES

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.

“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 captionHow can a company be valued at billions, but not make any profit?

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.

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

The pressure follows signs that outside investors do not value the much-hyped firm as highly as SoftBank did when it invested last year.

About Oluwadamilare Funsho

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