Fitness company Peloton announced Wednesday it has filed for an IPO, beginning the process to possibly join a growing list of businesses that have gone public this year.
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Peloton — known for its luxury indoor exercise bikes, but described as a fitness, technology and media company — said it filed the paperwork confidentially and has not yet determined the number of shares or the price range it will offer. The JOBS Act allows a company to file confidentially if it generates less than $1 billion in revenue.
Peloton was founded in 2012 and sold its first bike two years later with the goal of changing how people exercise from the comfort of their homes. The company focuses on using “technology to bring group exercise” right to consumers’ homes.
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The company offers several packages to purchase a bike or a treadmill, a recent addition, before signing up for a monthly membership to attend the virtual classes. A bike package ranges from $2,245 to $2,694, while a treadmill could cost up to $4,844 for a family bundle.
While Peloton offers a $39 a month subscription for its classes to be paired with its exercise equipment, it also started offering a subscription to allow customers to access Peloton classes without purchasing a bike or treadmill.
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The company was valued at $4 billion after raising $550 million in financing from investors last year, CNBC reported. Co-founder and CEO John Foley told the network in May 2018 that Peloton has been able to double its size every year.
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“It’s a beautiful business model. Our investors are happy,” Foley said.
Several companies, including Uber and Beyond Meat, have gone public earlier this year.
