Pure Gym confirms intention to push forward with IPO plan

Pure Gym, the Leeds-headquartered gym operator, has revealed that it intends to proceed with an initial public offering (IPO) in October 2016.

Pure Gym is set to apply for admission of its shares to the premium listing segment of the Official List of the Financial Conduct Authority and to trade on the main market of the London Stock Exchange.

Founded in 2008, the company is the largest gym operator in the £4.4bn UK health and fitness club market by both number of gyms (163 as at 30 June 2016 including 40 gyms within the M25) and number of members (785,770 as at 30 June 2016).

Pure Gym established itself as the UK’s largest gym operator after completing the acquisition of LA Fitness and its 43 fitness clubs in 2015.

In the first six month of 2016, Pure Gym has opened 27 new gyms, 16 of which were conversions of previously acquired LA Fitness gyms. Revenue during this period is £76.6m, which is a 51% increase year-on-year.

The IPO is expected to raise gross primary proceeds of £190m.

Tony Ball, chairman of Pure Gym, said: “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.”

Humphrey Cobbold, chief executive officer of Pure Gym, added: “Pure Gym is ready to become a listed company.

“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.

“We have a well-established and committed management team and are already benefiting from the scale of our 167 gym estate which provides a fantastic platform for future expansion in the fitness and health arena.

“As well as opening more gyms, we will continue to invest in technology and the innovation it supports. Technological capability has been and will remain fundamental to our success and going forward offers opportunities to further differentiate the options and services we provide our members.”