Low cost gym operator The Gym Ltd has secured its 250 million pound ($377 million) initial public offering on the London stock exchange, as its private equity backers look to cash in on rising demand for affordable gym memberships.
The company, majority owned by Phoenix Equity Partners, has sold 64,068,246 shares, equivalent to 50 percent of its issued share cpaital, at 195 pence per share.
The Gym will receive 90 million pounds of gross proceeds from the offer, with the selling shareholders expected to raise proceeds of 35 million pounds.
Since the opening of its first gym in July 2008, The Gym has grown to become one of Britain’s biggest operators of low-cost gyms with 66 sites and 363,000 members as of Sept. 30.
Under Phoenix’s ownership, the company’s growth has accelerated, with 11 new openings in the first nine months of 2015 alone.
Phoenix and fellow investor Bridges Ventures LLP will hold approximately 28.1 percent and 13.9 percent of The Gym’s share capital respectively, while directors and members of the senior management team will hold approximately 6.9 percent.
Barclays and Numis Securities Limited acted as Joint Sponsors, Joint Global Coordinators and Joint Bookrunners. Peel Hunt LLP acted as Lead Manager.