Approximately 12% of the fitness centres operator, which recently rubbished reports of a major acquisition, is being sold by funds run by Phoenix Equity Partners and Bridges Ventures a little less than a year after the company floated on the main market. The 210p per share strike price is just under a 6% discount to the prevailing 222.63p share price before the announcement, although marginally above Gym's 195p IPO price on 9 November 2015.
Following the bookbuild, Phoenix Equity Partners will continue to hold 20.4% stake in the company, while Bridges Ventures will retain a 10.1% slug of shares.
Also among the sellers is non-executive director Paul Gilbert. He has sold 332,713 shares in the company, netting a tidy near-£700,000 lump sum. Gilbert will also retain a substantial investment in the business, his remaining stake of 887,776 shares worth around £1.86 million at the current 209.25p share price.
Gym Group’s rival, Pure Gym, plans to float on the London Stock Exchange and intends to raise £190 million to pay down debt. It has double the number of gyms than Gym Group currently nationwide.