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Pure Gym IPO: Fitness chain looks to raise £190m

Pure Gym is pushing ahead with plans for an initial public offering (IPO) on the London Stock Exchange next month, the company has said. The low-cost gym operator hopes to raise £190 million to pay down debt and fund expansion.

Pure Gum, which is owned by funds advised by CCMP Capital Partners and Hermes GPE, announced in a statement today that it was planning to list on the LSE’s Main Market next month, with shares to be offered to institutional investors. The gym operator noted that the IPO was expected to raise gross primary proceeds of £190 million, but did not disclose the expected price of the shares.
The company further noted that it was planning to use the majority of the proceeds to repay existing bank debt in full, with the remainder to be used to reduce net leverage and for future growth opportunities.
“Pure Gym is ready to become a listed company,” the group’s chief executive Humphrey Cobbold said in the statement, adding that as well as opening more gyms, the company would continue to invest in technology and innovation.
The business was founded in 2008 and following a period of rapid expansion is now the UK’s largest gym operator, with 163 gyms and nearly 790,000 members across the UK. The company reported in the statement that its revenue had climbed to £76.6 million in the first six months of the year, from £50.8 million a year ago, while the group’s adjusted earnings before interest, taxes, depreciation and amortisation came in at £23.5 million, up from £18.5 million in the prior-year period.
Sky News noted in its coverage of the Pure Gym IPO that a floatation valuing the group at £500 million had been expected to launch in June, but was put on hold amid the post-referendum market volatility.

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