The Gym Group fixes valuation at £250m with today’s IPO
Pay-as-you-go fitness chain The Gym Group has set its IPO at 195p per share, giving the company a market cap of around £250m.
This is lower than the original valuation, which had been expected to come in around £300m.
The business will be issuing just over 64m shares to the main market, 50 per cent of issued share capital, with conditional dealing starting at 8am today under the ticker GYM. Unconditional dealing will begin on 12 November.
The company will receive £90m of gross proceeds from the listing, of which £35m will go to the selling shareholders including funds managed by Phoenix Equity Partners and Bridges Ventures as well as some of The Gym Group's directors, senior management and staff.
After the IPO, Phoenix and Bridges will hold approximately 28.1 per cent and13.9 per cent of the company's shares and directors and senior management will hold approximately 6.9 per cent.
Chief executive John Treharne said: "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.
"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."
Having launched in 2008, The Gym Group has grown to become a leading operator of low-cost gyms in the UK with 66 sites and 363,000 members as of 30 September 2015.
Barclays Bank and Numis Securities acted as joint sponsors, joint global coordinators and joint bookrunners. Peel Hunt was lead manager.