A long list of lossmaking groups seeking to float

Peloton disclosed its prospectus for its hotly anticipated initial public offering on yesterday as the manufacturer of high-end treadmills and at-home cycling equipment joins a long list of lossmaking private groups seeking to float on the stock market. The company, known for its stationary bikes that retail for almost $2,000, said its losses had climbed nearly fourfold to $196 million in the year to June 30. The documents showed Peloton had burnt through cash at its fastest clip since its founding despite revenue doubling from the previous year to $915 million… Peloton had filed its prospectus confidentially with US securities regulators in June. It was valued  at $4.15 billion in August last year when the venture-capital firm TCV led a $550 million funding round.  The group said it planned to raise $500 million in the IPO, although that figure is a place holder used to calculate filing fees and is likely to change. Peloton yesterday disclosed it would offer investors in its IPO shares of class A common stock, which carry a single vote per share. The company also has supervoting class B common shares, which carry 20 votes apiece, giving executives… and early backers… control of Peloton. 

Richard Henderson and Eric Platt 

 

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