Peloton Interactive, (PTON) the New York-based home fitness platform, has submitted regulatory filings detailing plans for an initial public offering, indicating it hopes to raise as much as $1.33 billion from the deal.
The company also said in a Tuesday statement that it planned to start its roadshow, a series of presentations to investors, regarding the IPO. Bloomberg News, citing a schedule it obtained, said the roadshow would begin on Wednesday with presentations in Frankfurt and London.
Peloton registered with the SEC an offering of 40 million Class A common shares at an estimated $26 to $29 each. And it granted the underwriters an option on 6 million more shares.
If the company sells all the shares at the top of the estimated range, the offering is valued around $1.33 billion.
In addition, affiliates of a current Peloton shareholder, the venture-capital firm TCV, have agreed to buy Class A shares valued at $50 million according to the IPO price. Those shares won’t be registered under U.S. securities law. This part of the deal is subject to regulatory conditions, Peloton said.
The company has applied to list the Class A on the Nasdaq Global Select Market under the symbol PTON.
Goldman Sachs (GS – Get Report) and JPMorgan (JPM – Get Report) are the lead bookrunning managers for the offering.
Bloomberg reported that the roadshow meetings will continue through Sept. 25, when the shares are set to be priced. The cities in which Peloton will present include New York, San Francisco and Toronto.
Media reports say Peloton is looking for a valuation on the whole company of more than $8 billion in the IPO. That’s almost double the $4.15 billion valuation the company received in August 2018 in a $550 million funding round led by TCV, the Financial Times reported.
The company was founded by its chief executive, John Foley, in 2012.
At the end of June, Peloton, which sells connected home fitness equipment and monthly class subscriptions, had more than 511,000 subscribers — more than twice the 246,000 it had a year earlier.
Peloton reported that in the year through June, its net loss widened to $195.6 million from $47.9 million in the year-ago quarter. Sales more than doubled to $915 million from $435 million.
The Class A shares get one vote each. The company also has a Class B stock carrying 20 votes a share, which gives Foley, other executives and certain early investors control of the company.
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