Member Article

Budget fitness chain The Gym Group marks flotation with £250m IPO

The Gym Group has announced that it is hoping to raise £250m from its flotation, with conditional dealings set to commence at 8am today.

The budget gym operator’s initial public offering of 64,068,246 Shares are priced at 195 pence per share, with its entire issued share capital of 128,105,275 Shares to be admitted to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange.

The company will receive £90m of gross proceeds from the offer. In addition, the offer is expected to raise gross proceeds of £35m for the selling shareholders, comprising certain funds managed by Phoenix Equity Partners Limited, a fund managed by Bridges Ventures LLP and certain of the Directors, Senior Management and employees of the company.

Phoenix and Bridges will hold approximately 28.1% and 13.9% of The Gym Group’s issued ordinary share capital respectively, while directors and members of the senior management team of the company will hold approximately 6.9% of the company’s issued ordinary share capital.

John Treharne, chief executive of The Gym, commented: “Today marks a significant milestone in the development of The Gym and we are delighted at the strong levels of investor interest and support for our IPO.

“I would like to welcome our new shareholders, all of whom recognise that The Gym is a pioneer in the low-cost gym sector, benefiting from a compelling customer proposition with affordable, ‘no-contract’ flexible membership and gyms that are open 24 hours a day, seven days a week.

“The Gym gives members the freedom and flexibility to improve their health and fitness on their own terms, removing the old barriers of fixed, high-cost contracts which have served to reduce accessibility in the past.

“We operate a successful, innovative and technology-led disruptive business model, driven by an experienced management team and highly motivated colleagues. We believe that these factors give us a significant competitive advantage and we look forward to using our listing to realise our growth strategy.”

In 2014, the chain abandoned plans for a £300m merger with competitor firm, Pure Gym after competition regulators requested a more in-depth investigation into the deal.

The Gym Group has more than 50,000 members and currenty runs 60 sites across the UK.

This was posted in Bdaily's Members' News section by Ellen Forster .