US IPO Week Ahead: Peloton takes the public market for a spin in 3-IPO week

Three IPOs plan to raise a combined $1.8 billion in the week ahead.

Peloton Interactive (PTON) is the largest, targeting $1.1 billion at a market cap of $9.0 billion. Known for its premium connected exercise bikes, Peloton grew sales by 110% to $915 million in FY19. Unlike other fast-growing consumer products IPOs in past years (GPRO, FIT), Peloton has successfully established a subscription base (20% of revenue). However, it is still highly unprofitable (-8% EBITDA margin; -21% FCF). Backed by Tiger Global and True Ventures, it was last valued privately at $14.44 per share in August 2018.

Endeavor Group (EDR) plans to raise $600 million at a market cap of $7.7 billion ($12.1 billion enterprise value). The large Hollywood talent agency has unique assets and partnerships, including a majority stake in the popular Ultimate Fighting Championship. That said, the business is highly levered with many moving parts, and a trailing EBIT margin of just 0.9%.

Fintech Oportun Financial (OPRT) is raising $100 million at a market cap of $454 million. Backed by IVP, Greylock and Madrone, insiders are floating 25% of the deal. Formerly Progreso Financiero, it originally focused on the underserved, underbanked US Hispanic community, but has since targeted the broader "credit invisible" and mis-scored population. Primarily in California and Texas, Oportun’s APRs range from 20% to 67%. During the 1H19, net revenue increased 21% to $252 million, though net income fell by more than 60% to $28 million.

U.S. IPO Calendar
Issuer Business Deal Size Market Cap Price Range Shares Filed Top Bookrunners
Oportun Financial (OPRT)San Carlos, CA $100M $454M $15 - $17 6,250,000 Barclays JP Morgan
Provides loans to low and moderate income consumers with limited credit history.
Peloton (PTON)New York, NY $1,100M $8,992M $26 - $29 40,000,000 Goldman JP Morgan
Sells connected home fitness equipment and monthly class subscriptions.
Endeavor Group (EDR)Beverly Hills, CA $600M $7,663M $30 - $32 19,354,839 Goldman KKR
Global entertainment production company and talent agency.

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Endeavor Group Holdings

Oportun Financial

Peloton Interactive

Pre-IPO Research

US IPO Week Ahead: Peloton takes the public market for a spin in 3-IPO week

Investment Disclosure: Renaissance IPO ETF (symbol: IPO) Renaissance International ETF (symbol: IPOS)

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