After a period of relative calm in the UK economy, the Brexit referendum result last June caused ripples large enough to derail the planned IPO of low-cost operator Pure Gym in October 2016.
Pure Gym had been planning to raise £190m to pay off debt and to bolster future growth, but CEO Humphrey Cobbold was forced to concede: “Given the challenging IPO market conditions, the board has decided not to proceed with a listing.”
Pure Gym is the UK’s largest gym operator, both in terms of clubs (163) and members (785,770) – so what does this mean for the rest of the sector? If even Pure Gym couldn’t pull off an IPO, will other chains be dissuaded from trying? And how does the broader investment community view the health and fitness sector – how should the industry go about getting the capital it needs to grow? We ask the experts…