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PureGym near the London Float shelf of £ 1.5 billion in IPO market volatility | Business News

Pure Gym, the UK’s largest health and fitness club chain, is about to abandon its £ 1.5bn stock market listing amid rising signs of turmoil among investors.

Sky News has learned that Pure Gym, a majority owned by private equity fund Leonard Green & Partners, can decide to shelve its proposed initial public offering (IPO) earlier this week.

Once confirmed, this move will highlight the anxieties that have plagued London’s IPO market in recent weeks.

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Pure Gym bounced after the shock of a pandemic that cost £ 500,000 a day due to the forced closure.

Roof tile maker Marley postponed the £ 500m list earlier this week due to market volatility, and online marketplace Flugo said it had “paused” the float last week.

Pure Gym has not officially announced an IPO, but said in August that it was considering one of its funding options.

Morgan Stanley and Barclays were at the forefront of the listing, with Berenberg, Jeffreys and the Royal Bank of Canada playing supporting roles.

IPOs have emerged as a preferred option for the company, which trades from more than 500 sites across Europe, including more than 285 in the UK, according to city sources.

If Pure Gym withdrew, it was unclear whether it would consider other funding options or whether the IPO would come back.

Investors say the company was likely trying to raise hundreds of millions of pounds if the float went ahead.

The proceeds were to be used to accelerate the opening of new gyms and repay their large debts.

The company is chaired by former B SkyB boss Tony Ball and run by CEO Humphrey Cobbold.

“The pandemic has highlighted what Jim is an important community asset, and we’re happy to welcome members when they reopen,” Kobold said in August.

He added that it was “natural” for the company to raise new funding.

Pure Gym has fully recovered from the first shock of the pandemic. The site’s closure cost £ 500,000 daily.

A Pure Jim spokesman declined to comment.

PureGym near the London Float shelf of £ 1.5 billion in IPO market volatility | Business News

Source link PureGym near the London Float shelf of £ 1.5 billion in IPO market volatility | Business News

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