Shares of Peloton (PTON) slid in their first trading day, finishing at $25.76 on Thursday. Meanwhile, Endeavor Group (EDR) put its own IPO plans on hold, following in the footsteps of We Company (WE), which also recently decided to wait on coming public.
Peloton opened on September 26 at $27.00. The company had priced 40M shares at $29.00, at the high end of the $26.00-$29.00 range. Goldman Sachs and JPMorgan acted as joint book running managers for the offering. Peloton is best known for at-home fitness equipment and accompanying streaming fitness services.
In a research note ahead of the company's IPO, DA Davidson analyst Michael Kawamoto initiated coverage of Peloton with a Neutral rating and $29 price target, stating that the company has "impressive" topline growth, but market saturation and its ability to scale remain questions. Recent investments, along with "very robust marketing spend," will keep profitability "muted" for at least the next few years, the analyst added.
Oportun Financial (OPRT) opened on September 26 at $15.70 per share. The company had priced 6.25M shares at $15.00, at the low end of the $15.00-$17.00 range. Barclays, JPMorgan and Jefferies acted as joint book running managers for the offering. Oportun Financial provides credit services using alternative underwriting data.
- Peloton closed its first trading day at $25.76. The stock slid further Friday, dipping another 4%.
- Oporton Financial ended the week at $16.26 after opening higher.
UPCOMING IPOS: Among the upcoming IPOs are Heartland Bancorp (HBT), Karat Packaging (KRAT), Frequency Therapeutics (FREQ), ADC Therapeutics (ADCT) and Aprea Therapeutics (APRE).
Heartland Bancorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates 15 full-service banking offices.
Karat Packaging produces eco-friendly good and related packaging products.
Frequency Therapeutics is developing a drug treatment for sensorineural hearing loss.
ADC Therapeutics is developing a pipeline of drug treatment candidates for various blood cancers and solid tumors.
Aprea Therapeutics focus on developing cancer therapeutics that activate the reactive mutant p53 tumor suppressor protein, expressed by the TP53 gene, which management claims is the most commonly mutated gene in cancer.
Endeavor, a holding company for talent and media agencies that was founded back in 2009 following the merger of the William Morris Agency and the Endeavor Agency, announced on Thursday night that it has postponed its previously announced initial public offering. "Endeavor will continue to evaluate the timing for the proposed offering as market conditions develop," the company stated. The IPO had been expected to open on Friday.
"Opening Day" is The Fly's recurring series of stories on the latest initial public offerings, their performance, analyst commentary and upcoming IPOs.