Peloton rival iFIT postpones IPO as volatility concerns rise

A specialist trader works at a stand on the floor of the New York Stock Exchange (NYSE) in New York, United States, October 6, 2021. REUTERS / Brendan McDermid

Oct. 7 (Reuters) – IFIT Health & Fitness Inc postponed its U.S. IPO on Thursday, citing unfavorable market conditions worrying investors over increasing volatility in capital markets.

While the United States has recently experienced a bullish surge in its capital markets, defaults by Chinese real estate developers linked to the plight of cash-strapped Evergrande, record energy costs and inflation have. fueled investor concerns and market fluctuations.

IFIT is the first large company to suspend its IPO in the United States due to this increased volatility in the stock markets and follows several European companies, including the French Icade Santé, which put their IPO plans on ice. .

Allvue Systems Holdings, a provider of alternative investment technology solutions, announced last week that it would postpone its New York IPO, citing unfavorable market conditions.

Logan, Utah-based iFIT, which was previously known as ICON Health & Fitness, said it would continue to assess the timing of its IPO.

IFIT sells treadmills, stationary bikes, ellipticals, fitness clothing and shoes, among others. Its other brands include ProForm and Freemotion.

The company has its roots in the founding of Weslo Inc in 1977, a predecessor company. IFIT, which now has more than 6.4 million members, according to its record, sold interactive fitness products with a gross value of $ 2.8 billion in fiscal year 2021.

A successful IPO of the company would build on the momentum gained by the surge in demand last year as people trained at home during the COVID-19 pandemic with clubs closing in health and gyms to curb the spread of the virus.

The company was valued at over $ 7 billion in an October funding round in which it raised $ 200 million from private equity firm L Catterton and existing backer Pamplona Capital Management. .

Reporting by Sohini Podder and Noor Zainab Hussain in Bengaluru; edited by Uttaresh.V and Vinay Dwivedi

Our Standards: Thomson Reuters Trust Principles.

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