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Summary
- F45 Training announced its initial public offering (IPO) plans on Wednesday, July 7.
- The firm is backed by celebrities like Mark Wahlberg, David Beckham and Earvin 'Magic' Johnson.
- The tech-enabled fitness franchisor began operations in 2013. Since then, the company has opened more than 1,487 fitness studios.
F45 Training, a tech-enabled fitness franchisor, announced the terms of its initial public offering (IPO) on Wednesday, July 7.
The global fitness company began operations in 2013, and has since launched over 1,487 fitness studios and sold 2,247 franchises in at least 63 countries, as of March 31, 2021.
Notably, the company is backed by celebrities like Max Payne star Mark Wahlberg, football sensation David Beckham and former basketball player Earvin 'Magic' Johnson.
F45 Training stock price, IPO date & IPO size
F45 Training will reportedly present about 19 million of its common shares at the offering, each priced in the range of US$ 15 to US$ 17.
F45 plans to list its shares on the New York Stock Exchange (NYSE) under the ticker of 'FXLV'.
According to reports, Goldman Sachs and JPMorgan Change have been selected as the primary underwriters of the deal.
FXLV stocks could reportedly hit the markets by next week.
F45 Training’s IPO update comes after the fitness franchisor cancelled its move to merge with Crescent Acquisition, a special purpose acquisition company (SPAC), in June 2020. With this IPO, the company reportedly aims to raise US$ 345 million in gross proceeds.
F45 provides programs that can be completed both in studios and at home. Amid the COVID-19 pandemic, several F45 studios were shut. But as many sought out ways to work out in the safe spaces of their homes, F45’s hybrid model came in handy.
As booking pre-IPO shares have become relatively easier, investors interested in this enterprise can consult with a brokerage company to explore its pre-IPO shares.
Copyright © 2020 Kalkine Media
F45's financials and outlook of the fitness industry
According to the company's prospectus, F45 recorded franchise revenues of US$ 52.6 million in 2020, up from US$ 42.9 million in 2019. In the latest fiscal year, its cash and cash equivalents increased to US$ 28.96 million.
In Q1 2020, the fitness company posted adjusted EBITDA of US$ 5.3 million, representing an increase of approximately US$ 2.7 million year-over-year (YoY).
Market research firm Technavio estimates that the global gym and fitness clubs market size is expected to increase by US$ 20.31 billion between 2020-2024. The industry will likely expand at a compound annual growth rate (CAGR) of four per cent, as per the report.
The projected growth of the industry could see F45’s stock expand once it hits the market.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
