Peloton IPO: At-home exercise firm prices float at $29 per share
Exercise bike firm Peloton has priced its initial public offering (IPO) at $29 per share to value the company at $8bn (£6.47bn).
Peloton priced its float at the top of its $26 to $29 range last night as it looks to raise $1.16bn.
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The fitness firm will sell 40m Class A shares when it begins trading on the Nasdaq this afternoon under the ticker PTON.
It filed to go public back in August, when it revealed it had made $915m in revenue for the 12 months to the end of June.
That figure was a 110 per cent rise on the previous year for the company, which offers at-home fitness equipment that carry screens for customers to join live and recorded fitness classes from their living rooms.
Peloton now has 1.4m members, while it enjoys strong margins from selling its $2,000 bikes and $4,000 treadmill.
However, the exercise company saw losses widen to $245.7m in its last financial year, around five times bigger than its $48m loss in 2018.
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Sales and marketing costs wiped out its profit but they are unlikely to go soon, with Peloton looking to expand abroad.
Peloton is also fighting legal battles like a $300m lawsuit on behalf of 10 music labels and artistic groups, which allege Peloton has used more than 2,000 songs without a licence.
Main image credit: Peloton