Pure Gym Group has unveiled its IPO plans, after months of working towards a flotation on the London Stock Exchange.
The company said this morning it intends to apply for a listing on the main market, and the IPO is "expected to raise gross proceeds of £190m". Pure Gym will use the proceeds to repay its existing bank debt in full, with the remainder earmarked for expansion plans.
The group, which is currently controlled by American private equity fund CCMP Capital Advisors, is aiming for a free float of "at least 25 per cent" of the company's issued share capital, while an over-allotment option of up to 15 per cent of the total offer size will also be made available.
Pure Gym was founded in 2008, and today claimed the status of largest gym operator by both number of gyms, with 163, and number of members, with 785,770.
In January the gym group appointed Rothschild to advise on its options - including the possibility of a float. And in its results for last year the firm showed it had been bulking up ahead of a potential IPO, with revenues up 82 per cent to £125m and Ebitda up 46 per cent to £28m.
“Pure Gym is ready to become a listed company," said the firm's chief executive, Humphrey Cobbold.
"An IPO will enable us to be an even stronger counterparty for landlords, further raise our profile by building greater awareness of our strong brand, and provide a mechanism for incentivising the colleagues who have worked so hard to build the UK’s leading gym business."
Tony Ball, Pure Gym chairman, added: “Pure Gym’s growth from a start-up company in 2008 to undisputed market leader today is a story of disruption and shows how entrepreneurial vision can build real business success.
"When the company was founded the traditional gym market was moribund. It did not cater for modern gym users who are tech-savvy, want to be able to exercise at any time of day or night and want gyms they actually use, all without being locked into an expensive 12-month contract.
Our successful model is built around our members’ needs and it has made gym membership accessible for hundreds of thousands of people and created a fast growing, successful company. Considering what the company has achieved in just eight years, I am hugely excited about its potential for the future.
Other advisers on the deal were Jefferies, JP Morgan Cazenove and Credit Suisse.