Planet Fitness Gears Up for Secondary Offering
Selling stockholders are offering up 10 million Planet Fitness shares. At Monday’s closing price, the entire offering is valued up to more than $224 million.
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Planet Fitness Inc. (NYSE: PLNT) recently filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. Selling stockholders are offering up 10 million shares with an overallotment option for an additional 1.5 million shares. At Monday’s closing price of $19.49, the entire offering is valued up to $224.14 million.
Keep in mind that this company has a market cap of roughly $670 million, valuing this offering at about one-third of the total market cap.
The underwriters for this offering are JPMorgan, Merrill Lynch, Jefferies, Guggenheim, Baird, William Blair, Credit Suisse, Piper Jaffray, and Cowen.
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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 detailed in its report:
Our judgement-free approach to fitness and exceptional value proposition have enabled us to grow our revenues to $330.5 million in 2015 and to become an industry leader with $1.5 billion in system-wide sales during 2015 (which we define as monthly dues and annual fees billed by us and our franchisees), and more than 8.3 million members and 1,171 stores… System-wide sales for 2015 include $1.4 billion attributable to franchisee-owned stores, from which we generate royalty revenue, and $95.6 million attributable to our corporate-owned stores. Of our 1,171 stores, 1,113 are franchised and 58 are corporate-owned.
The company will not receive any proceeds from this offering. Instead the selling stockholders will.
Shares of Planet Fitness were trading down 6% at $18.25 on Tuesday, with a 52-week trading range of $13.23 to $19.65.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
