Story updated with closing price.
The company’s shares opened nearly 7 percent lower than its IPO price and continued to decline throughout the day. Peloton priced its shares at $29 each on Wednesday, at the top of its range. It raised $1.16 billion with its initial public offering, which sold 40 million shares.
Subscribe to the Crunchbase Daily
Its debut on the public markets–it’s trading on the Nasdaq under the ticker “PTON”–was less than impressive. The company’s stock was trading at $26.92 around 1:15 p.m. EST. But still, it was within the pricing range of $26 to $29 per share that the company previously set.
Peloton is known for its high-end (we’re talking nearly $2,000) stationary bike and streaming workouts. The company reported having 1.4 million members so far in its S-1 filing, and recorded 58 million workouts in fiscal 2019.
The company’s revenue has been rising fast, increasing 110 percent from $435 million in fiscal 2018 to $915 million in fiscal 2019.
Peloton joins a slew of other consumer-facing tech or tech-adjacent startups to go public this year, including Uber, Lyft, and SmileDirectClub. It also joins Uber and SmileDirectClub in having its stock price open lower than its set IPO price on its first day of trading.
In other IPOs Thursday, financial services startup Oportun went public, opening at $15.70 per share, above its IPO price of $15. While a fintech startup isn’t as splashy as Peloton, there’s something to be said about one’s stock opening higher than its IPO price on its first day.
Illustration Credit: Li-Anne Dias