Peloton plans to raise as much as $1.3 billion in an IPO that would double its value to $8 billion

Peloton set a price range of $26 to $29 a share for its upcoming IPO.

The maker of internet connected fitness equipment said it intends to sell 40 million Class A shares in the offering.

The planned offering would value Peloton at up to $8 billion, double the private market valuation that it fetched one year ago.

Peloton said it will raise as much as $1.3 billion in the IPO.

Visit Business Insider's homepage for more stories.

Peloton, the buzzy maker of expensive internet-connected stationary bikes and treadmills, will seek to raise as much as $1.3 billion in its initial public offering.

The IPO would value the money-losing company at somewhere between $7 billion and $8 billion, depending on where the shares price, Peloton said in its S-1 filing with the SEC on Tuesday.

The offering would represent a significant step up from Peloton's last valuation in the private markets, when venture investors pegged its worth at $4 billion in 2018. And it comes at a time when another high-profile company — office sharing company WeWork — has faced brutal scrutiny after launching its IPO process and hasreportedly had to slash the price it expects its shares to fetch.

Peloton plans to sell 40 million shares of its Class A stock to public investors, priced somewhere between $26 a share and $29 a share. The company said the underwriters of the IPO would have the right to purchase an additional 6 million Class A shares.

Founded in New York in 2012, Peloton sells $2,000 internet-connected stationary bikes, as well as pricey treadmills. Customers also pay anywhere between $19 and $40 month for access to specially produced live exercise classes.

The company boasts that its “churn rate,” the portion of subscribers who cancel service, is extremely low. But according to customer-retention experts that Business Insider has spoken to,Peloton's reported churn metrics are significantly understated.

Peloton, which lost roughly $246 million in fiscal 2019 despite fast growing revenue, plans to trade on the Nasdaq exchange under the “PTON” ticker.