• Peloton erased more than $900 million in investor capital Thursday after its initial public offering on the Nasdaq.
  • The company's stock opened at $27, which was 6.9 percent losing than its offer price of $29.
  • That marked the third-worst trading debut for a mega-IPO since the financial crisis a decade ago.
  • Peloton wound up closing 11 percent lower on the day, at $25.76.
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Peloton wiped out more than $900 million in investor wealth Thursday after its initial public offering on the Nasdaq exchange.

The connected-fitness company sold 40 million shares for $29 each, raising nearly $1.2 billion in new funding through the IPO. The shares closed down about 11 percent at the end of the trading day, slumping to $25.76 per share.

The stock started trading at $27, which was 6.9 percent below its offer price. That marked the third-worst trading debut for a mega-IPO since the financial crisis a decade ago, trailing only SmileDirectClub and ADT.

Peloton joins a slew of unprofitable unicorns now trading on public markets. Uber and Lyft, two of the largest companies to go public this year, have both fallen below their IPO prices as they struggle to turn a profit.

The company sells $2,000 stationary bikes and live-streamed exercise class subscriptions, and has more than 500,000 customers. Peloton brought in $915 million in sales year-to-date, with losses hitting $245.7 million in the same time frame.

This post originally appeared on Business Insider.

Published on: Sep 27, 2019