Recent high flying unicorn companies like We Work and Uber have not had an easy road to the public markets. But Peloton looks like it is gliding to Wall Street.
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The fitness startup is best known for on-demand workouts available on high-priced exercise bikes and treadmills priced its IPO Wednesday night at $29 a share according to Reuters —the high end of the original $26-$29 price range. The offering raises $1.16 billion and values the trendy digital fitness company at $8.2 billion. Peloton sold 40 million Class A shares, in line with original projections.
Despite this good fortune — compared to the likes of We Work, which was forced to postpone its IPO and ousted its CEO and founder — Peloton is facing a bit of an obstacle course as well. For the year ended June 30, Peloton’s revenue more than doubled to $915 million but net losses widened to $195.6 million from $47.9 million as costs continued to grow for marketing and sales to attract new customers.
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In addition, the company is in a legal battle with 10 music publishers and artistic groups, which accuse Peloton of using of more than 2,200 songs without paying a license fee. The lawsuit is asking Peloton for $300 million. CLICK HERE TO READ MORE ON FOX BUSINESS
