The peloton falls as the fitness company at home asks to sell $ 1 billion in common stock

Peloton bike
Peloton bike.

  • The peloton said Tuesday that it has applied to sell $ 1 billion in common stock.
  • Units associated with the investment companies Double Capital Partners and TCV were interested in buying shares.
  • Peloton shares fell as much as 7% in pre-market trading before the loss was reduced.

Peloton shares fell on Tuesday after the maker of high-end training equipment said it plans to sell $ 1 billion in shares.

The company, which sells bikes, treadmills and interactive classes, has launched an unwritten public offering of $ 1 billion of shares in its Class A stock, it said in an early Tuesday statement.

Peloton shares fell as much as 7.1% to $ 44.10 in pre-market trading, after which the loss was reduced to 2%. This year, the share has lost around 69 per cent.

The company said units affiliated with Durable Capital Partners LP and TCV as well as funds and accounts advised by T. Rowe Price have expressed interest in buying shares in the offering.

Peloton expects to give the offer’s insurers a 30-day option to buy up to an additional $ 150 million of shares.

The offering comes less than two weeks after stocks suffered their biggest one-day decline ever due to weak first-quarter results and lowered forecasts for fiscal year 2022 as people emerge from pandemic-induced lockdown mode.

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