Venture capitalists are looking to return from group training courses and personal training.
Xponential Fitness Inc., the boutique fitness brand behind exercise studios like Rumble and Pure Barre, has filed paperwork for an IPO.
The Irvine-based company announced its IPO on Monday and trades on the New York Stock Exchange under the ticker symbol XPOF.
The company that made their wildcard offer $ 100 million. had made plans for an IPO a year ago. However, it was reportedly forced to postpone those plans when the COVID crisis broke out, forcing gyms around the world to close.
Bank of America Corp., Jefferies and Morgan Stanley are leading the transaction. The pricing terms were not disclosed, but an April Bloomberg report, citing unnamed sources, said the value is estimated at nearly $ 1.3 billion.
The company declined to comment on the company’s IPO or Bloomberg’s previous report.
Xponential describes itself as “the country’s largest boutique fitness franchisor”. Since its inception in 2017, the company has built and acquired nine studios in 48 states and 10 countries outside the United States, according to a statement announcing its IPO. As of March 2021, it will operate 1,775 storefront locations, according to SEC papers.
The company acquired its first two training brands in September 2017 and has since gained franchise partners such as CycleBar, Stride and, most recently, the boxing brand Rumble. These acquisitions gave the company access to training studio instructors and enabled the company to provide branded marketing and technical support.
As vaccination rates rise – and states relax restrictions on gyms and other indoor events – the company predicts consumers will return to boutiques and personal fitness classes in the second half of 2021.
The pandemic has slowed indoor exercise companies across the country. However, as consumers stayed at home to exercise, home fitness equipment sales rose, according to Pitchbook data. Most of VC investments in 2020 were driven by these home fitness products and technologies, such as bicycle bikes and wearables for activity tracking, which were also advancing.
Xponential followed the trend, launched a digital platform and streamed free workouts on Facebook and Instagram. The company lost revenue, but continued to open new studios and sell franchise licenses.
According to a recent report by Pitchbook, the global physical activity economy – the market which includes fitness technology and equipment, among others – is projected to hit $ 1.1 trillion by 2023.
Related articles on the web
