iFIT Targeting Nearly $7 Billion Valuation in IPO With Recent SEC Filing
In its filing with the SEC, iFIT Health & Fitness stated that it's looking to raise over $600 million in its IPO. The company owns brands such as NordicTrack.
Sept. 28 2021, Published 5:09 a.m. ET
The details for iFit Health & Fitness’s IPO have been revealed in a filing the company made on Sep. 27. The fitness company is looking to raise approximately $646.15 million through the IPO, setting a valuation of around $6.61 billion. In the filing, iFit said that it plans to sell approximately 30.77 million shares in the offering, each priced between $18 and $20.
Formerly known as ICON Health & Fitness, iFit originally filed with the SEC to go public on Aug. 31. At first, it was speculated that the company would raise around $100 million, much less than what it now intends. The fitness equipment maker is behind brands such as NordicTrack, ProForm, and Freemotion, which are some of the world's biggest fitness equipment manufacturers.
iFit’s IPO vs. competitors'
The Utah-based company may very well have a successful IPO, but it could raise less than what rival Peloton did. For its IPO in 2019, Peloton raised $1.16 billion, giving it a valuation of $8 billion at the time. Its IPO shares were priced at $26.67, slightly higher than what iFit is expected to price its shares at. The companies have a similar business model, selling fitness equipment and various subscription services. While Peloton’s bestsellers tend to be its exercise bikes, it manufactures treadmills and other products as well.
Since its IPO in 2019, Peloton's stock price has increased over 280 percent, reaching an all-time high of around $170 in Jan. 2021. Since then, the stock has fallen more than 45 percent, decreasing over six percent in Sep. 2021. In its earnings for fiscal 2021's fourth quarter, Peloton (PTON) reported a loss of $1.05 per share.
With other concerns surrounding the company such as manufacturing issues and it being forced to slash prices, PTON has been considered a high-risk investment. What could help the bike manufacturer is that it recently announced a partnership with UnitedHealth, one of the largest healthcare providers in the U.S. Select UnitedHealth members will receive a free year of Peloton’s subscription service.
Will iFit be a good buy?
It remains to be seen what iFit's IPO price will be. The fitness company also offers a wider range of and more affordable equipment than Peloton, and had over $1.7 billion in sales for the year ended May 31, 2021. As it gears toward going public, the company has acquired various fitness manufacturers and subscription services.
The fitness brand announced in Jul. 2021 that it had acquired Sweat, a fitness app for women, building upon its established fitness software and subscriptions. According to its Sep. 27 filing, iFit had over 6.3 million members, 1.5 million fitness subscriptions, 10.1 million products sold, and $1.78 billion in fiscal 2021 so far.