By Dhirendra Tripathi

Investing.com – Peloton stock (NASDAQ:) traded 3.3% lower in Tuesday’s premarket as the gym equipment maker hit the market with an offer to sell stocks worth $1 billion.

Offering includes greenshoe options of up to 150 million dollars in Class A shares. 

On Monday, the stock was 3.5% less at $47.49. If the sale were to happen at this price, the offering would roughly come to 7% of the company’s stock, or 8% if the greenshoe is exercised. 

Peloton indicated three likely destinations for the stock: entities affiliated with Durable Capital Partners,  accounts advised by broker T. Rowe Price,  and TCV, one of whose co-founders is also a director of Peloton.  

After the November 4 earnings reports, where the company lowered its annual revenue guidance of up to $1 billion, shares have fallen by around 44%. At a time of fading pandemics and gym reopening, the company underestimated demand for its home fitness equipment.  Only 6% of revenue increased to $805.2 Million in the quarter’s first quarter. 

Peloton anticipates that annual sales will not exceed $4.8 billion, and may be as low as $4.4 billion for the current year.