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Another unicorn is preparing for his public debut. Platoon, the maker of interactive exercise bikes at home and treadmills offering personal training courses online, has set a lineup for its initial public offering that could value the company to more than $ 8 billion.
The story back. It was an important year for unicorns – private companies valued at more than $ 1 billion – that went public.
Uber Technologies
(UBER) and
Lyft
(LYFT) both performed poorly, with investors questioning carpool business models and heavy losses. But overall, the year was pretty good for public offerings. None of them, however, has been more successful than
Beyond the meat
(BYND), which climbed to $ 146.90, up 487% from the price of its $ 25 IPO.
Plato, who earns money selling his machines as well as pre-recorded and live online courses, hopes his home drills will remain. Nevertheless, he reported a net loss attributable to common shareholders of $ 245.7 million for the 2019 fiscal year.
What's up. Platoon updated its opening brief on Tuesday, and set a price range of 26 to 29 dollars. It plans to sell 40 million shares, while its nearly two dozen subscribers have the opportunity to buy 6 million additional shares. That would bring in more than a billion dollars, if the stocks were selling in the range.
The company plans to register on the Nasdaq and debut with the PTON ticker. The date has not been set.
Look forward. Although Peloton's losses may be worrying, some analysts have suggested that revenue growth is the key to early outperformance.
Goldman Sachs'American Equity Strategist David Kostin noted last week that companies earning profits in their first year as a public company are no more likely to outperform the Russell 3000 index over the last three years than companies that have experienced a loss for the first three years. year.
Goldman Sachs
one of the main underwriters of the Peloton IPO, with
JP Morgan
.
"Simply put, investors were not punishing stocks that had a loss in the first 12 months compared to profitable companies during that period," said Kostin.
Write to Connor Smith at [email protected]
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