This week’s IPO Calendar lists $1.8 billion in IPOs. By recent standards, that’s a lot of volume. But this week is an unusual one. It breaks down into just three names: Peloton Interactive (PTON proposed) plans to raise $1.1 billion. Endeavor Group Holdings (EDR proposed) expects to raise $600 million and Oportun Financial (OPRT proposed) aims to raise $100 million.
There you have it – three names totaling $1.8 billion.
The word coming from Wall Street is that there is some hype about these deals. In contrast, a few questions arise after reading the prospectus for each deal. The focal point in each case is the section headed “SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA.” Let’s take a look at this week’s IPOs and those reported numbers.
Peloton Interactive, based in New York City, offers high-end exercise bikes and treadmills along with interactive fitness classes, which subscribers can access through touchscreens attached to those devices. Now for the numbers (see Page 54 of Peloton’s prospectus): For the fiscal year ended June 30, 2019, Peloton reported a net loss of $195.6 million on revenue of $915 million and an accumulated deficit of $629.5 million.
On Wednesday evening, Sept. 25, 2019, Peloton plans to offer 40 million shares at $26 to $29 each to raise $1.1 billion, the mid-point of its price range.
Endeavor Group Holdings, based in Beverly Hills, California, is a global entertainment, sports and content company. The company offers what it considers the world’s most dynamic and engaging storytellers, brands, live events and experiences. Now for the numbers (see Page 100 of Endeavor’s prospectus): For the six-month period ended June 30, 2019, Endeavor reported a net loss of $192.6 million on revenue of $2.05 billion and – see Page F-3 – an accumulated deficit of $650 million. As of Dec. 31, 2018, Endeavor reported total long-term debt of $4.5 billion (Page F-39).
On Thursday evening, Sept. 26, 2019, Endeavor plans to offer 19.4 million shares at $30 to $32 each to raise $600 million, the mid-point of its price range.
Oportun Financial, based in San Carlos, California, offers financial services to low- to moderate-income individuals with limited or no credit history. Now for the numbers (see Page 74 of Oportun’s prospectus): For the six-month period ended June 30, 2019, Oportun reported net income $28.4 million, down from net income of $77.3 million for the same period a year ago.
On Wednesday evening, Sept. 25, 2019, Oportun plans to offer 6.25 million shares at $15 to $17 each to raise $100 million, the mid-point of its price range.
(For more information about these companies, please check the IPO Profiles on IPOScoop.com.)
Week of Sept. 30th
This week will wrap up September and flip the calendar to October, which has just one small-cap IPO. But that could change when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday morning.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.