(Reuters) Planet Fitness Inc’s shares fell as much as 14 percent in their market debut, valuing the fitness club operator at $1.36 billion.
The lackluster debut comes a day after Amplify Snack Brands Inc, the maker of SkinnyPop popcorn, and residential solar company Sunrun Inc tumbled on their first day of trading.
Planet Fitness shares, which were priced at the top end of the expected range of $14-$16, hit a low of $13.75 before recovering to trade down 6.5 percent at $14.95.
Planet Fitness gyms, known for their “judgment free” approach featuring relatively non-demanding equipment and regimens, have more than 7 million members.
The company, which caters mainly to first-time or occasional gym users, says its cheapest package is $10 per month, compared with the industry average of $46.
The IPO is the latest in a string of fitness and healthcare-related companies that have gone public, including wearable fitness device maker Fitbit Inc and cloud-based health and fitness platform provider Mindbody Inc.
Indoor cycling fitness chain SoulCycle Holdings LLC is expected to debut later this year.
The offering of 13.5 million Class A shares raised $145.6 million for Planet Fitness and $70.4 million for private equity firm TSG Consumer Partners, which remains the largest shareholder with a 67.9 percent stake.
Planet Fitness reported a 33 percent rise in revenue to $279.8 million last year.
Planet Fitness, the gym partner for NBC’s popular TV show “The Biggest Loser”, owns 58 fitness centers and franchises more than 950 in the United States, Canada and Puerto Rico.
The Newington, New Hampshire-based company, founded in 1992, has said it aims to more than quadruple its fitness centers to more than 4,000 over an unspecified period.
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