Tuesday 17 May 2016 12:20 pm

Fitness of European IPO market boosted by recent activity flurry

A Dutch fitness chain has become the latest company to announce plans for a flotation amid a recent flurry of European activity.

Basic-Fit operates 351 clubs across Europe and has more than one million members.

Read more: IPOh yeah! Signs of life in London's flotation market

The company, which operates across the Netherlands, Belgium, Luxembourg, France and Spain, today declared its intention to make an initial public offering (IPO) on Euronext Amsterdam.

After a slow start to the year – globally and across Europe – there have been signs of a pickup in activity in the IPO market this month.

Yesterday, Philips Lighting announced that it expects to raise up to €844m (£665m) with a flotation later this month.

Read more: Ding dong: Energy company set to announce plan for £8.5bn IPO

Also on Monday, Maisons du Monde revealed plans to carry out France’s first IPO so far this year, with the flotation expected to value the company at more than €1bn.

And last week Danish company Dong Energy announced its intention to list on the Nasdaq Copenhagen exchange in an IPO that could come this summer.

In the UK, May has seen the likes of Hotel Chocolat, Midwich and Directa Plus price IPOs. Joules has also unveiled plans to list on the alternative investment market (Aim).

Read more: IPO K.O.: Global volume of deals plunges to seven-year low

Basic-Fit has not revealed details of timings and size on its flotation, but said it would use the proceeds to open up to 75 new clubs a year in the medium term.

It reported 2015 earnings before interest, taxation, depreciation and amortisation (Ebitda) of €60m and €202m in revenue.

Rene Moos, chief executive and co-founder of Basic-Fit, said: “We have realised significant growth over the past years, supported by our current main indirect shareholder 3i, and are now ready for a new phase.

“We believe an IPO is the logical next step in the development of Basic-Fit and a listing will be instrumental in effectively implementing our strategy going forward.”

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