Pure Gym avoids overstretch as it confirms it has pulled the plug on a £190m London IPO
Pure Gym confirmed this morning it has abandoned plans to proceed with an initial public offering (IPO), citing concerns about a "challenging" and volatile market.
The company, which is the UK's largest gym operator, announced it was planning a £190m share sale in mid-September.
Pure Gym had planned to use the proceeds to repay its existing bank debt in full, with the remainder earmarked for expansion plans.
Sources close to Pure Gym told Morning Wire yesterday that the group had gathered sufficient investor interest for the London listing but board members had grown anxious about launching a flotation in the current market.
In a statement released this morning, chief executive Humphrey Cobbold 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 with have opened 35 new Pure Gyms and had over 150,000 new members join.
Cobbold added current trading has been "strong", giving the company confidence it can "capitalist on the significant market opportunity and encourage even more people to become fitter and healthier".