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Peloton Interactive, the maker of high-end web-connected stationary bikes and treadmills, priced its initial public offering at $29 a share Wednesday night. That price marks the high end of the company’s anticipated price range of $26 to $29 a share.

After the 40-million-share offering, the company will have just shy of 280 million shares outstanding, giving the company a market cap of $8.1 billion. The company will start trading on Nasdaq Thursday with the symbol PTON. Goldman Sachs and J.P. Morgan are leading the underwriting group.

Like many 2019 IPOs, Peloton is both growing fast and losing lots of money. For its June 2019 fiscal year, Peloton had revenue of $915 million, up a gaudy 110% from the previous year, but with a loss of $195 million.

The company had 1.4 million “members” as of June 2019, who together completed 58 million workouts in the latest fiscal year. To date Peloton has sold 577,000 bikes and treadmills combined (mostly bikes), with 564,000 of those in the U.S.

SEE ALSO: The Peloton IPO Is Coming. 8 Things You Need to Know.

The company’s model involves selling pricey hardware and accompanying monthly subscriptions to classes. Peloton reported FY 2019 “connected fitness products” revenue—sales of its bikes, treadmills, and related accessories—of $719.2 million, up 106%, with subscription revenue of $181.1 million, up 126%. Peloton offers streaming-content subscriptions through its bikes and treadmills for $39 a month. The bikes cost $2,245, while the treadmills are $4,295. Digital subscribers can pay $19.49 a month and access content on iOS and Android devices while using their own fitness equipment.

The largest post-IPO investors include Tiger Global, with a 19.6% stake; True Ventures, 12.9%; Fidelity, 6.7%; TCV, 6.7%; and CP Interactive Fitness, 5.4%. CEO John Foley holds a 6.1% stake. Peloton had raised $994 million in private funds, according to PitchBook, and was last valued in the private market at $4.15 billion.

Peloton’s substantial losses could give some investors pause, while others could worry that the company’s pricey bikes and substantial monthly subscription fees might not have sticking power with fickle workout enthusiasts. Also, bears will note that fitness-related hardware companies Fitbit (ticker: FIT) and GoPro (GPRO) have struggled mightily in the public market.

On the bullish side, investors in recent years have gravitated toward subscription-driven businesses like Netflix (NFLX) and Adobe (ADBE).

In a research note this week, MKM Partners analyst Rohit Kulkarni provided a list of four key investor questions about the company. At the top of the list: How big is the addressable market? The MKM analyst notes that Peloton sees a potential domestic market of 12 million households. But he adds that investor consensus is that Peloton’s estimates of market size “feels a bit high.” He points out that Planet Fitness (PLNT) has 12.5 million members, while Gold’s Gym has 2.5 million members.

Other key issues, according to Kulkarni: the gross margin outlook, the company’s valuation on a sum-of-the-parts basis, and the potential of “star instructor” concentration risk.

“Simply put, instructors are a critical part of Peloton’s success, and we think live classes led by popular instructors are one of the keys to Peloton’s long-term sustainable competitive advantage,” he wrote. He noted that one popular instructor recently left Peloton and “created a mini-Reddit storm.”

Peloton stock should start trading a few hours after the market opens on Thursday.

Write to Eric J. Savitz at eric.savitz@barrons.com