At-home fitness company Peloton Interactive on Wednesday priced its Initial Public Offering at $29 a share, the top of its original range between $26 and $29.
The offering raises $1.16 billion and values the digital fitness company at $8.1 billion. Peloton sold 40 million Class A shares, in line with original projections.
Peloton is the first company to make cycles and treadmills equipped with screens for users to join live and recorded fitness classes remotely. It has earned a loyal and avid following of users, who stream its classes from their homes, hotels or the office.
Peloton’s sales have grown to $915 million for the fiscal year ended June 30, up 110% from $435 million in fiscal 2018.
Those sales, though, have come at a cost. Its 2019 net loss widened to $245.7 million, from a net loss of $47.9 million in the prior year, amid growing sales and marketing costs.
Experts say those costs may only increase further as Peloton sets its sights on international growth.
The company is also battling litigation, including a $300 million lawsuit lodged by 10 music publishers and artistic groups, which accuse Peloton of using of more than 2,200 songs without licensing any of them.
Shares are expected to list starting today on the NASDAQ index under the symbol PTON.
