(Bloomberg) — Peloton Interactive Inc. jumped as much as 7.6% on Tuesday, erasing a premarket drop of as much as 8% after the fitness company said it will sell $1 billion of stock.
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The share offering follows a 45% decline since Peloton slashed its annual revenue forecast by as much as $1 billion on Nov. 4 amid lower projections for both subscribers and profit margins coming out of the pandemic.
Short interest in Peloton comprises 9.5% of the public float, according to data from financial analytics firm S3 Partners. This is the first public offering in Peloton since its 2019 initial public offering at $29 per share, according to data compiled by Bloomberg. Goldman Sachs and JPMorgan, the two lead banks on the IPO, are underwriting the new deal.
Durable Capital Partners LP, TCV, and funds and accounts advised by T. Rowe Price Associates Inc. have expressed an interest in buying shares in the offering, Peloton said in a statement.
(Updates first and second paragraphs with the latest trading. Adds short interest details in paragraph three.)
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