(Bloomberg) -- Endeavor Group Holdings Inc., the entertainment and Hollywood talent company, has cut the target of its U.S. initial public offering, a move that will slash its valuation by $1 billion, on the same day Peloton Interactive Inc. slumped in its market debut.
The company announced Thursday that it will sell 15 million shares at $26 to $27 each, according to an amended filing with the U.S. Securities and Exchange Commission. It earlier marketed 19.4 million shares at $30 to $32 apiece. This lowers the amount it was looking to raise to $405 million from $619 million.
Endeavor would now be worth about $6.3 billion if it sells shares at the midpoint of the new offering range, based on the 237.4 million fully converted diluted shares expected to be outstanding after the IPO, down from $7.6 billion before the cut.
High-profile flops in the IPO market could present a cautionary tale for the ones to come. Other IPOs in the pipeline this year include security software company McAfee Inc and Madewell Inc, a denim chain being spun off by J. Crew Group Inc, Bloomberg has reported.
Shares of home-fitness start-up Peloton fell as much as 9.5% in its Thursday debut after setting its price at the high-end of the range. The much-anticipated deal is the third-worst trading debut in a decade for a company that has raised over $1 billion. Several billion-plus listings from this year such as Uber Technologies Inc., Lyft Inc. and SmileDirectClub Inc. are trading below their IPO offer price.
We Co., the parent company of WeWork , was supposed to be one of the largest IPOs of this year before it paused its plans after its corporate governance structure turned off investors and led to the ouster of Chief Executive Officer Adam Neumann.
Endeavor Is Said to Be Poised to Price IPO Below Targeted Range
Endeavor aims to price its offering Thursday and is expected to start trading Friday on the New York Stock Exchange under the symbol EDR.
--With assistance from Matthew Monks.
To contact the reporter on this story: Crystal Tse in New York at ctse44@bloomberg.net
To contact the editor responsible for this story: Liana Baker at lbaker75@bloomberg.net
©2019 Bloomberg L.P.
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