US Markets

Fitness startup Peloton's shares fall in U.S. market debut

Shares of Peloton Interactive Inc, the fitness startup known for on-demand workout programs on its exercise bikes, slid as much as 7% in their market debut, giving the company a market value of $7.55 billion.

Adds background, financials

Sept 26 (Reuters) - Shares of Peloton Interactive Inc PTON.O, the fitness startup known for on-demand workout programs on its exercise bikes, slid as much as 7% in their market debut, giving the company a market value of $7.55 billion.

The New York-based company's shares opened at $27.00 and inched up to $27.25 on the Nasdaq.

Peloton priced its initial public offering at $29 on Wednesday, at the higher end of its expected price range, raising about $1.16 billion at a valuation of $8.1 billion.

The company had marketed a price range of $26 to $29 per share.

The valuation is based on 279.5 million outstanding shares. (https://bit.ly/2lV3sAU)

Peloton said it plans to use funds from the offering to run its operations, invest in marketing and acquire new technologies.

For the year ended June 30, Peloton's revenue more than doubled to $915 million. However, its net loss widened to $195.6 million from $47.9 million a year earlier.

The company's flotation comes on the heels of the stock market debut of teeth alignment firm SmileDirectClub Inc SDC.O, which priced shares above its target range, but underwhelmed investors who punished the stock.

Founded in 2012, Peloton sells indoor bicycles and offers packages requiring memberships to access live and on-demand classes from home.

The company was most recently valued at $4.15 billion, according to data provider PitchBook.

Ride-hailing companies Uber Technologies Inc UBER.N and Lyft Inc LYFT.O also went public earlier this year with high expectations, but their shares have tumbled since then, after investor concerns over their steep losses.

Goldman Sachs, J.P. Morgan, BofA Merrill Lynch and Barclays are the lead underwriters for the Peloton IPO.

(Reporting by Abhishek Manikandan in Bengaluru Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)

((Abhishek.Manikandan@thomsonreuters.com; within the U.S. +1 646 223 8780, outside the U.S. +91 80 6749 2963;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More