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- Peloton said Tuesday it has filed to sell $1 billion in common stock.
- Entities connected with investment firms Double Capital Partners and TCV were interested in purchasing shares.
- Peloton stock fell as much as 7% in premarket trade before trimming the loss.
Peloton stock fell Tuesday after the high-end exercise equipment maker said it plans to sell $1 billion in shares.
The company, which sells bikes, treadmills, and interactive classes, has started an unwritten public offering of $1 billion of shares of its Class A common stock, it said in an early Tuesday statement.
Peloton stock slumped as much as 7.1% to $44.10 in premarket trade, then pared the loss to 2%. The stock this year has lost about 69%.
The company said entities affiliated with Durable Capital Partners LP and TCV as well as funds and accounts advised by T. Rowe Price have expressed an interest in purchasing stock in the offering.
Peloton expects to grant the offering’s underwriters a 30-day option to purchase up to an additional $150 million worth of shares.
The offering comes less than two weeks after shares suffered their biggest one-day drop ever on weak first-quarter results and lowered forecasts for fiscal 2022 as people emerge from pandemic-induced lockdown mode.
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