Pure Gym withdraws plans for IPO
LEEDS gym chain Pure Gym has announced that it will not proceed with an IPO after saying that pursuing a listing in a “period of market volatility” is not in the long-term interests of the company and its stakeholders.
The business announced its intention to float in September.
The 163-gym chain was expecting to raise £190m on its admission to the official list of the London Stock Market.
It said it would use the proceeds to repay existing bank debt in full, making it more attractive to potential investors.
Humphrey Cobbold, chief executive of Pure Gym, said: “Given the challenging IPO market conditions, the board has decided not to proceed with a listing despite the strong interest shown by potential investors.
“Pure Gym’s excellent growth track record and market leading position give us a solid platform for further expansion in the attractive gym market. This year alone we have opened 35 new Pure Gyms and had over 150,000 new members join.
“Current trading is strong giving us further confidence that we can capitalise on the significant market opportunity and encourage even more people to become fitter and healthier.”
Pure Gym was founded in 2008 by serial entrepreneur Peter Roberts, and the chain has now grown to 785,770 members. Originally from Ripon, Mr Roberts founded hotel operators Golden Tulip UK, which was sold to Whitbread in 2007.
In 2015 it turned over £125m and opened 27 gyms in the first half of 2016, of which 16 were conversions for former LA Fitness gyms, which was acquired in May 2015, bringing 43 sites to the group.
