London Stock Exchange today welcomed The Gym Group plc to the Main Market
London Stock Exchange today welcomed The Gym Group plc, a leading operator of high quality low-cost gyms in the UK, to the main market following its successful IPO.
The Gym was one of the pioneering operators of the UK low-cost gym segment and has grown to become the second-largest operator of low-cost gyms in the UK, with 66 gyms and 363,000 members as of 30 September 2015. The low-cost gym segment is an attractive sub-sector of the overall UK health and fitness club market and The Gym offers a compelling value-for-money customer proposition with a low price point, ‘no-contract’ flexible membership and gyms that are open 24 hours a day, seven days a week. It operates an innovative, technology-led disruptive business model and online-only registration process. Its gyms are bright and spacious with large amounts of well maintained, high-specification fitness equipment.
The Gym raised £125 million from new investors which will be used to support the continuation of the Company’s growth strategy, including the opening of between 15 and 20 gyms in total in 2015 and each year thereafter over the medium term. The flotation gives the business a valuation of approximately £250 million and the Company’s shares will trade under the ticker GYM.
John Treharne, Chief Executive of The Gym, commented:
“Today marks a major milestone in the development of The Gym Group and we are delighted with the strong levels of investor interest and support for our IPO. Our new shareholders recognise that The Gym Group is a pioneer in the low-cost gym sector, benefiting from a compelling customer proposition with affordable, ‘no-contract’ flexible membership and gyms that are open 24 hours a day, seven days a week. We give members the freedom and flexibility to improve their health and fitness on their own terms, removing the old barriers of fixed, high-cost contracts which have served to reduce accessibility in the past. We believe that these factors give us a significant competitive advantage and we look forward to using our listing to realise our growth strategy.
“The IPO allows us to further our vision to provide affordable access to exercise facilities and expert help to every person who wants to improve their wellbeing, whatever their starting point, whatever their destination.”
Barclays Bank PLC and Numis Securities Limited acted as Joint Sponsors, Joint Global Co-ordinators and as Joint Bookrunners. Peel Hunt LLP acted as Lead Manager. STJ Advisors acted as Financial Advisor to the Company whilst Allen & Overy and Clifford Chance acted as legal advisors. EY acted as Reporting Accountants and FTI Consulting acted as Financial PR advisor.