We reported yesterday on Peloton’s IPO, with the company pricing its shares at $29 for a valuation of $8.1bn. How did that go once the market opened? Not so well.
At the time of writing, Peloton’s market cap is $7.2bn, with its share price having fallen by 11% over that first day as a public company. “The third-worst trading debut in 10 years in the U.S. for companies that have raised at least $1 billion,” according to Bloomberg, which quoted Peloton CEO John Foley as admitting he had “some disappointment” about the stock performance. “It’s an interesting time in the markets. There is anxiety. The markets are on edge.”
The IPO was still significant in terms of raising cash that Peloton will be able to deploy towards its next wave of growth, plus its licensing commitments to music rightsholders ($42m of minimum guarantees over the next three years, as its IPO filing revealed) and any settlement or damages resulting from the copyright-infringement lawsuit filed against Peloton recently by music publishers.