NordicTrack parent iFit releases details for IPO valuing the Peloton rival at up to $6.7B

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• NordicTrack parent iFIT Health & Fitness (IFIT) released details Monday for a planned IPO that could value the firm at up to $6.7B
• iFiT (IFIT) said in a revised S-1 filing with the U.S. Securities and Exchange Commission that it plans to offer some 30.8M Class A shares within an $18-$21/share range. It’s also granting underwriters the option to buy as many as roughly 4.6M extra shares for overallotments.
• Plans call for the stock to list on the Nasdaq under the ticker symbol “IFIT.”
• The company expects to have about 200.5 Class A shares following the IPO, or some 205.1M if underwriters exercise all overallotment options. IFIT also said entities related to co-founder and CEO Scott Watterson will own about 114.4M Class B shares, which carry 10 votes each vs. one for Class A stock.
• All told, the company expects to have about 314.9M Class A and B shares outstanding, or 319.5M if underwriters buy all overallotment stock. Assuming both stock classes carry the same value, that will value IFIT at $5.7B to $6.7B on a non-diluted basis, depending on how many overallotment shares underwriters purchase and where the stock prices within its expected range.
• IFIT wrote in its S-1 that it expects to net some $557.3M if the IPO prices at a midpoint $19.50/share, or $641.7M at that price if underwriters fully exercise their overallotment options.
• iFit (IFIT) said it intends to use $465M of that for general corporate purposes, $57.3M to pay down debt and $35M for a contractually required payment to Watterson. The company’s debt payoff will rise to $141.7M if underwriters purchase all available overallotment shares.
• IFIT makes the famous Nordictrack line of treadmills, stationary bikes and other gym equipment, along with additional brands Freemotion, ProForm, Sweat and Weider.
• However, it’s expanded beyond just making traditional gym equipment to offering Internet-enabled devices and live and recorded Web-based fitness classes and other content, similar to what rivals like Peloton (NASDAQ:PTON) offer.
• “iFIT is an integrated health and fitness platform, designed to connect our proprietary software, experiential content and interactive hardware to deliver an unmatched connected fitness experience,” the company wrote in its S-1. “We deliver our patented interactive experiences on the industry’s broadest range of fitness modalities including treadmills, bikes, ellipticals, rowers, climbers, strength equipment, fitness mirrors, yoga equipment and accessories.”
• IFIT said it has 6.4M total members in more than 120 countries. The company said members pay $15 a month ($39 monthly for families of up to five) to access exercise content.
• The firm reported that revenues more than doubled to about $1.7B in the fiscal year ended May 31, although higher expenses also more than quadrupled IFIT’s net loss to $516.7M:

• Seeking Alpha’s Donovan Jones recently analyzed the IPO, writing that IFIT “has grown revenue and gross profit impressively, but is generating high operating losses.”