IPO of the Week: Planet Fitness

Planet Fitness

With its first store opened in Dover, New Hampshire in 1992, Planet Fitness is a fitness centers franchisor and operator held by private equity group TSG Consumer Partners. Planet Fitness operates corporate-owned stores as well as provides services to franchisees.

Planet Fitness generates revenue from franchisee-owned stores (royalty revenues, franchise fees, placement revenue, and other fees and commission income), corporate owned stores (monthly membership fees, enrollment fees, annual fees etc., and retail sales), and equipment sales (and equipment replacement to franchisee-owned stores).

On 8/6/2015, Planet Fitness began trading on NYSE led by J.P. Morgan, BofA Merrill Lynch, Jefferies and Credit Suisse. The company was priced at $16.00 per share, top of its $14.00 to $16.00/share range. Planet Fitness sold 13.5 million shares and with a 15% over-allotment option fully exercised, the fitness centers chain was valued at $1.58 billion at offer. Planet Fitness opened at $14.50/share, below the IPO price, but rallied back to close the first day unchanged at $16.00. Planet Fitness was included in the IPOX® 100 U.S. Portfolio on 9/16/2016 and currently weighs approximately 0.59% of the portfolio.