(Bloomberg) -- Peloton Interactive Inc. founder John Foley and Tiger Global Management’s Chase Coleman still have plenty to celebrate, even after the fitness company became the latest in a string of unprofitable startups to turn in a lackluster market debut.
The maker of internet-connected exercise bikes priced 40 million shares at $29 apiece, raising $1.16 billion -- then sank 11% to close Thursday at $25.76. That was still good enough to give Tiger Global, Peloton’s biggest shareholder, a profit of about $1 billion on its investment, based on information that had been provided this week by a person familiar with the matter. The hedge fund firm’s 20% stake is now worth $1.2 billion.
Foley, Peloton’s chief executive officer, is doing OK, too. His holding in the New York-based company is worth $427 million.
Foley still expressed some disappointment following the initial public offering.
“It’s an interesting time in the markets,” he said in an interview with Bloomberg Television. “There’s a lot of political things, business things. There is anxiety. The markets are on edge.”
Peloton, which had dropped as much as 15% earlier in the day, turned in one of the worst U.S. trading debuts in a decade among companies that have raised at least $1 billion, according to data compiled by Bloomberg. Earlier this month, shares of SmileDirectClub Inc. cratered 28% on their first day of trading. They’ve dropped an additional 22% since.
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