Fitness startup Peloton Interactive targets up to $1.33 billion in IPO

(Reuters) - Peloton Interactive Inc, the fitness startup known for on-demand workout programs on its exercise bikes, is planning to raise up to $1.33 billion in an initial public offering.

The New York-based company in a regulatory filing said it expects to offer 46 million shares, including underwriters' option, priced between $26 and $29 per share. []

The top end of the indicative price range gives the company a market value of $8.23 billion, based on 283.7 million outstanding shares, including the IPO underwriters’ option.

Founded in 2012, Peloton sells indoor bicycles in packages requiring memberships to access live and on-demand classes from home.

The company was most recently valued at $4.15 billion, according to data provider PitchBook.

For the year ended June 30, Peloton’s revenue more than doubled to $915 million. However, the company saw its net loss widening to $195.6 million from $47.9 million.

Ride-hailing companies Uber Technologies Inc UBER.N and Lyft Inc LYFT.O went public earlier this year with high expectations but both faced criticism from investors about their steep losses.

Another loss-making IPO hopeful, WeWork owner The We Company, has also struggled to quell skepticism around its valuation.

Peloton said it plans to use funds from the offering to run its operations, invest in marketing and acquire new technologies.

Goldman Sachs, J.P. Morgan, BOfA Merrill Lynch, Barclays are among the underwriters to the IPO.

Reporting by Bharath Manjesh in Bengaluru; Editing by Shailesh Kuber and Maju Samuel