iFIT Health & Fitness, which is the parent company of Freemotion among other brands, has offered more details on its proposed initial public offering (IPO), an offering that could value the company between $5.67 billion and $6.61 billion.
No date has yet been set for the IPO, but the revised S-1 form now states that the company plans to offer 30.8 million Class A common stock at $18 to $21 per share when it begins trading on Nasdaq as iFIT. The company filed the original S-1 form on Aug. 30. It expects to grant underwriters a 30-day option to purchase an additional 4.6 million shares of Class A common stock at the IPO price, less underwriting discounts and commissions.
If the IPO prices at $19.50 per share, which is the mid-point of the expected share pricing, the IPO would bring in $557.3 million for the company. That number would increase to $641.7 million if underwriters fully exercise their 4.6 million extra shares in overallotment options.
iFIT would use $465 million of that for general corporate purposes, $57.3 million of it to pay down debt and $35 million for a required payment to its CEO, Scott Watterson. If the underwriters come through by purchasing all of the overallotment shares, the company would increase its debt payoff amount to $141.7 million.
In addition to Freemotion, iFIT also operates brands NordicTrack, ProForm, Sweat, Weider and 29029.
In fiscal 2021 (the company’s fiscal year ends May 31), iFIT sold approximately 10.1 million interactive fitness products with a gross merchandise value of $2.8 billion and generated $1.74 billion in revenue with net income of $516.7 million. Eighty-three percent of its total revenue was generated by sales of its connected fitness products and iFIT subscriptions, according to the company.
The company generated total revenue of $700 million during fiscal 2019 and $851.7 million in fiscal 2020. It generated net income of $56.6 million during fiscal 2019 and incurred net losses of $98.5 million and $516.7 million during fiscal 2020 and 2021, respectively.
iFIT is a global fitness and well-being subscription technology company with more than 6 million members in more than 120 countries. Its iFIT integrated health and fitness platform connects the company’s proprietary software, experiential live and on-demand content and interactive hardware.
iFIT operating system provides interactive experiences on its connected equipment brands, allowing members to gain access to its library of iFIT live and on-demand content for $15 per month for individuals or $39 per month for families of up to five.
IFIT reported 1.1 million total fitness subscribers at the end of May this year. Total number of workouts has been 112 million in fiscal 2021.
Peloton, which also offers interactive fitness, went public in September 2019 and trades on the Nasdaq as PTON. Its shares closed at $85.40 on Sept. 29, which is near its 52-week low of $80.48. Its 52-week high was $171.09.