Peloton prices its IPO at the top of its range, raking in $1.2 billion and giving it a $8.2 billion value
- Peloton has priced its public offering.
- The maker of connected fitness equipment will go public at $29 a share.
- The offering will raise $1.3 billion for the company and give it a market capitalization of $8.2 billion.
- Peloton's stock is expected to begin trading Thursday under the ticker symbol PTON.
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Fitness equipment maker Peloton found a healthy demand for its initial public offering.
The company priced its shares at $29 a piece Wednesday, it said in a press release. That's at the top of the range it previously forecast and will translate into $1.3 billion in cash that it will raise in the offering. That price will give the company a valuation of around $8.2 billion, about double the valuation it fetched in its last private funding round one year ago.
The company expects its shares to begin trading on the Nasdaq on Thursday under the symbol PTON.
Peloton makes stationary bikes and treadmills equipped with interactive displays. It also offers a subscription video service that streams exercise classes to its exercise equipment.
The company has quickly built up a passionate customer base and seen its sales soar. But it's also posted mounting losses and faces a $300 million lawsuit from top recording artists who allege that it used their songs without permission.
Peloton's successful IPO stands in sharp contrast to WeWork's failed effort earlier this month to go public. The commercial real-estate company, which a few weeks ago had the highest value of any startup, postponed its offering in the face of Wall Street resistance. It ousted its CEO earlier this week.
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