Peloton Interactive Inc. has announced that it is ready to file for an initial public offering. The home-exercise startup has filed the draft listing documents confidentially with the U.S. Securities & Exchange Commission. The company is working with JPMorgan Chase & Co. and Goldman Sachs Group Inc. to lead its listing.
Peloton said that the number of shares to be offered has yet to be determined. It also has not yet decided on the price range for the shares it expects to sell. People familiar with the matter have said that the company could be valued at more than $8 billion.
Peloton, founded in 2012, is best known for its connected exercise cycles and treadmills. Using the screens on the exercise equipment, users can join live and recorded fitness classes from their homes, offices, or hotel rooms. The company has also started selling digital memberships for workout classes that include yoga, meditation, and bootcamp classes.
The price points for Peloton products has been a source of criticism since the company launched. Its cycles cost about $2,000 and the treadmills sell for $3,995, considerably higher than some of its competitors. Subscriptions to access classes cost $39 per month, while the digital subscription for the workout classes not using Peloton’s equipment is $19.49 a month.
The company has been successful with raising capital from investors. In a funding round last year led by venture capital firm TCV, Peloton raised $550 million. That raised its total outside funding amounts to $1 billion, valuing the company at $4.15 billion. Other investors in the company have included Tiger Global Management, L Catterton, and Fidelity.
Peloton is just the latest technology company seeking to go public in 2019. Uber, Lyft and Pinterest all went public in the first half of the year. WeWork Cos. and Postmates Inc. have plans to go public in the second half of 2019. Slack Technologies Inc. is planning a direct listing rather than a traditional IPO to go public this summer.