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Peloton Interactive Prices IPO At $29/shr, High End Of Expected Range

Peloton Interactive Inc, the maker of high-end web-connected stationary bikes and treadmills, priced its initial public offering of about 40.00 million shares of class A common stock at $29.00 per share, which is the high end of the previously estimated range of $26.00 to $29.00 per share. The offering reportedly values the digital fitness company at $8.1 billion.

The stock is due to begin trading on Nasdaq on Thursday under the symbol "PTON."

The company estimates that the net proceeds from the sale of shares in this offering and the private placement will be about $1.1 billion, or about $1.3 billion if the underwriters exercise their option to purchase additional shares in full, based upon an assumed initial public offering price of $27.50 per share, which is the midpoint of the IPO price range, after deducting the estimated underwriting discount and estimated offering expenses.

The company said it primarily plans to use the net proceeds from the offering and the private placement for working capital and other general corporate purposes. It may also use a portion of the proceeds for the acquisition of, or investment in, technologies, solutions, or businesses that complement its business.

Peloton's sales rose 110.3% to $915 million for the fiscal year ended 30 June 2019, from $435 million in fiscal 2018. But, its 2019 net loss widened to $245.7 million, from a net loss of $47.9 million in the prior year.

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