F45 Training Holdings, the fitness franchise offering 45-minute workouts, raised $325 million in an initial public offering through the sale of 20.3 million shares at $16, the midpoint of the $15 to $17 projected range.
Backed by actor Mark Wahlberg, F45 Training’s boutique studios offer high-intensity interval, circuit, and functional training exercises. As of June 30, 2021, the company had sold 2,801 studio franchises in 63 countries; of the 1,555 built studios, 91 percent (1,415) had re-opened following temporary closures during the pandemic.
The company intends to use the net proceeds from the offering to repay indebtedness, to pay the purchase price for the company’s acquisition of certain assets of the Flywheel indoor cycling studio business, to pay cash bonuses to certain employees, to pay expenses incurred in connection with the offering and for working capital and general corporate purposes.
The company and the selling stockholder have granted the underwriters a 30 day option to purchase up to an additional 3,046,875 shares of common stock. The shares will begin trading Friday on the New York Stock Exchange under the symbol “FXLV” and the offering is expected to close on July 19, 2021.
Goldman Sachs, and J.P. Morgan acted as joint bookrunners on the deal.