US-based exercise equipment producer Peloton Interactive formally filed for a $500m initial public offering yesterday that would enable mass media group Comcast NBCUniversal and cosmetics supplier Grace Beauty to exit.
Peloton sells high-grade exercise bikes and treadmills with video screens that broadcast interactive fitness classes their users can access through a subscription scheme with 1.4 million members.
The company more than doubled revenue to $915m in the first half of this year, compared to the first half of 2018, but also increased its net loss more than fourfold to more than $195m. It confidentially filed to go public in June this year.
The IPO comes after some $995m in funding, and Peloton was valued at $4.15bn as of its last round, a $550m series F in August 2018 featuring Comcast NBCUniversal that was led by a $150m investment from growth equity firm TCV.
The 2018 round included investment and financial services group Fidelity in addition to Wellington Management, Kleiner Perkins Caulfield & Byers (KPCB), True Ventures and Balyasny Asset Management.
Comcast NBCUniversal had previously taken part in Peloton’s $325m series E round in mid-2017, investing with Fidelity Investments, KPCB, Wellington Management, True Ventures, Balyasny, GGV Capital and QuestMark Partners at a $1.25bn valuation.
Grace Beauty’s corporate venturing unit, Grace Beauty Capital, lists Peloton as a portfolio company and reportedly participated in its $3.5m series A round in 2012.
Neither corporate owns 5% or more of Peloton’s shares. Its largest shareholders are hedge fund manager Tiger Global Management (19.8%), True Ventures (12%), Fidelity (6.8%), TCV (6.7%) and a vehicle called CP Interactive Fitness (5.4%).
There are 21 underwriters for the offering, which is set to take place on the Nasdaq Global Select Market, and Goldman Sachs and JP Morgan Securities are the representatives.
BofA Securities, Barclays Capital, UBS Securities, Cowen and Company, Canaccord Genuity, Evercore Group, JMP Securities, KeyBanc Capital Markets and Needham & Company have also been appointed underwriters.
The list is completed by Oppenheimer, Raymond James & Associates, Stifel Nicolaus, SunTrust Robinson Humphrey, William Blair, Telsey Advisory Group, Academy Securities, Siebert Cisneros Shank & Co, R. Seelaus and Williams Capital Group.
