Heading toward potentially becoming a public company, Peloton Interactive Inc. is reportedly talking with banks about an initial public offering (IPO). The company is seeking a debut in the latter half of the year, The Wall Street Journal reported.
According to unnamed sources cited by the outlet, the company is looking for a valuation over $4 billion. But in 2017, the company took in capital at a valuation of $1.25 billon. Now, Peloton is reportedly forecasted to choose underwriters over the weeks to come. In an interview with the paper in 2018, Peloton Co-founder and Chief Executive John Foley noted that this year “makes a lot of sense” for an IPO.
The fitness company is among firms that have taken in funds from the private markets and are also looking to have an IPO this year. Lyft Inc., Uber Technologies Inc. and Slack Technology Inc. “recently filed confidential paperwork for offerings with the SEC,” according to the report. But the year has had a rocky start, as the agency didn’t have the ability to give the go-ahead for IPOs with the partial government shutdown.
The news comes after it was reported in 2017 that Peloton might have been looking to raise $120 million for a valuation of $1.2 billion, per unnamed sources. Peloton, which is based in New York, offers exercise bikes that come with tablets and allow spin class subscriptions, enabling customers to tap into the atmosphere of a spin class from their own homes.
At the time, it was reported that Peloton customers buy the bike and pay a delivery fee in addition to a monthly subscription charge for the classes. As of the 2017 report, the company had notched investments from L Catterton, True Ventures and Tiger Global.