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Interactive Platoon
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Worshiped for a long time by its clients, it aroused an icy reaction of the investors during the first day of the company on the public market.
The shares closed down 11.2% Thursday to $ 25.76, suggesting that the price of the IPO of Peloton would have been too aggressive for the first wave of public investors. The company set an IPO price of $ 29 last night.
The action had been opened at $ 27 a share, giving Peloton (symbol: PTON) a total market value of $ 7.7 billion, based on 286 million shares in circulation. (The company offered 40 million shares under the IPO with an option allowing the insurer to acquire six million additional shares.) It raised approximately $ 1.3 billion.
Peloton, founded in 2012, was valued at $ 4.15 billion in the private market, according to PitchBook data.
The company sells stationary bikes and treadmills equipped with Internet-connected tablets that broadcast live and on-demand courses. The company has 511,000 "connected fitness subscribers" using these products as of June 30.
Peloton sells his bike at $ 2,245 and his treadmill at $ 4,295. A monthly subscription that provides streaming content costs $ 39. Peloton also sells a monthly subscription of $ 19.49 that allows customers to broadcast courses on their own fitness equipment via a smartphone, tablet or web browser.
SEE ALSO: The IPO of Peloton arrives. 8 things to know.
The company recorded revenues of $ 915 million in its most recently completed financial year ended June 30, with a loss of $ 195.6 million. Revenues jumped 110% over the previous year, while the loss was $ 47.8 million.
In an interview Thursday, Jill Woodworth, chief financial officer of Peloton, said that a change in investor sentiment had probably had an impact on the company's early days.
"Like everyone else, we're watching a portion of the market, the IPO market in particular," she says. Barron. "The global macroeconomic market has begun to deteriorate in recent weeks. And you certainly see that when you talk to investors on the road. "
But Woodworth adds, "We are so excited about the capital we have raised. And we will be able to make all the great investments that we believe will continue to drive long-term value: more products, more geographies, more software. We are therefore delighted to have it behind us. "
WeWork, a high-value start-up, deferred its IPO, with Peloton discussing its offer with investors. But Woodworth did not say that as a specific reason for change of sentiment.
"I think there is a healthy skepticism in the market right now," she says. "I obviously want us to go out at a time when the market sentiment was better. But we are very pleased not only with our current shareholders, many of whom have been admitted to the IPO, but we have also been able to attract new shareholders of very high quality in the long run … So I am overall happy. "
The company's IPO documents included a long list of points to describe the company, but the description stands out as follows: "We are a technology company that combines the physical and digital worlds to create a totally new, immersive and logged. experience."
Barron wrote for the first time about Peloton in 2014, highlighting the plans of founder and CEO John Foley to use distributed technology to disrupt the fitness industry.
This story was updated with comments from Peloton's CFO and to reflect the closing price of the stock on the first trading day.
Write to Alex Eule at [email protected]
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