Planet Fitness Inc. priced its initial public offering at $16 a
share, the high end of expectations, according to a person familiar
with the offering.
The deal raised $216 million by selling 13.5 million shares,
according to the person. The budget fitness chain, which is known
for its $10 monthly memberships, and certain selling stockholders
were planning to sell shares at $14 to $16 apiece, according to
regulatory filings.
Planet Fitness's IPO comes the same day as a bloodbath in
trading debuts. Both Amplify Snack Brands Inc. and Sunrun Inc.
tumbled in their first session of trading on Wednesday. Amplify's
10% fall marked a rare setback for a high-profile IPO that priced
above its range and likely signaled a warning to big-name consumer
brands preparing to go public. Momentum investors piled into the
Amplify deal, which was more than 20 times oversubscribed, looking
for a big first-day pop. When there was none they bailed, a person
familiar with the matter said, taking the price of the stock down
with them.
The fall in Amplify's stock follows a string of strong first-day
performances by consumer brand companies. Last month, Blue Buffalo
Pet Products Inc. shares jumped 36% in their first day of trading.
Fitbit Inc., another consumer company that made its debut amid much
buzz earlier this year, also popped 48% after pricing above
expectations.
Planet Fitness, which is majority owned by private-equity firm
TSG Consumer partners, plans to begin trading on the New York Stock
Exchange Thursday under the symbol "PLNT." The deal is being led by
J.P. Morgan, Bank of America Merrill Lynch, Jefferies and Credit
Suisse
Write to Corrie Driebusch at corrie.driebusch@wsj.com
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