Yesterday iFIT Health and Fitness, owners of Nordic Track, Proform, and Freemotion, announced a delay in their US initial public offering (IPO), citing “unfavorable market conditions that have investors worried about growing volatility in capital markets,” reports Reuters.
Just last week, iFIT announced the upcoming launch of its IPO, a plan that included listing on the Nasdaq with the symbol IFIT and selling more than 30 million shares of its Class A common stock. The IPO price was expected to be between $18 and $21 per share, which would value iFIT at over $6 billion. The public IPO was thought to help iFIT raise as much as $646 million.
Unlike Peloton, a relative newbie on the scene, iFIT has been in business for more than 40 years, and is considered one of the world’s largest fitness manufacturers of treadmills, stationary bikes, ellipticals, rowers, and other connected fitness tech. IFIT has more than 6.4 million members across 120 countries and more than 1.5 million connected fitness subscribers. The company sold $2.8 billion in interactive fitness products in fiscal year 2021.
iFIT certainly hoped to build on the momentum from the massive increase in at-home workouts due to the COVID-19 pandemic with the timing of its IPO. But, a delay certainly doesn’t indicate that it’s a diminishing threat to Peloton’s market share. Meanwhile, Peloton did enjoy a small bump from the news: Shares of Peloton Interactive ran at nearly 6% higher in trading after iFIT’s announcement.
Industry insiders are certainly giving props to companies like Peloton that enjoy a flowing revenue stream from monthly subscriptions on top of expensive equipment, which seems to hold appeal for customers over the long haul. Of course with more and more competition from big guns like Apple, and the reopening of gyms and studios around the globe, at-home fitness brands have their work cut out for them.