Planet Fitness Inc. filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The expected price range was given in this filing as $14 to $16 on 13.5 million shares with an overallotment option for an additional 2.025 million shares. At the maximum price, the entire offering is valued up to $248.4 million. The company will list on the New York Stock Exchange (NYSE) under the symbol PLNT.

The underwriters for this offering are JPMorgan, Merrill Lynch, Jefferies, Credit Suisse, Guggenheim, Baird, William Blair, Piper Jaffray and Cowen.

The company considers itself one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations.

The locations are typically 20,000 square feet, with Planet Fitness-branded cardio, circuit- and weight-training equipment. The base rate is $10 per month for standard membership.

Planet Fitness has grown its revenues to $279.8 million in 2014 and at the same time had $1.2 billion in system-wide sales (which is defined as monthly dues and annual fees billed by the company and its franchisees). There are over 7.1 million members and 976 stores in 47 states, Puerto Rico and Canada as of March 31, 2015.

According to the filing:

System-wide sales for 2014 include $1.1 billion attributable to franchisee-owned stores, from which we generate royalty revenue, and $82.0 million attributable to our corporate-owned stores. Of our 976 stores, 919 are franchised and 57 are corporate-owned. Our stores are successful in a wide range of geographies and demographics. According to internal and third-party analysis, we believe we have the opportunity to more than quadruple our store count to over 4,000 stores in the United States alone. Under signed area development agreements (“ADAs”) as of March 31, 2015, our franchisees have committed to open more than 1,000 additional stores.

The company plans to use the net proceeds from the offering to purchase issued and outstanding holding units from investment funds affiliated with TSG Funds.

FULL FILING

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.