Planet Fitness Stumbles Out Of The Starting Block!

planet fitness Stumbles Out Of The Starting Block

Planet Fitness Stumbles Out Of The Starting Block!  Planet Fitness shares tumble below IPO price in trading debut

PLNT, -3.94% stock tumbled below its initial public offering issue price Thursday on its first day of trade. 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.

Planet Fitness has gone public to support its mission of “providing a high-quality…” But while the company’s profits have grown along with its footprint, so has its debt, to the tune of $500 million.

The company says its mission is to “enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment” it calls the Judgement Free Zone.

Meanwhile, the company may also run into other obstacles as it looks to grow. FIT, -13.18% reported quarterly earnings for its first time since going public in June.

The offering of 13.5 million Class A shares raised US$145.6 million for Planet Fitness and US$70.4 million for private equity firm TSG Consumer Partners, which remains the largest shareholder with a 67.9 per cent stake. Last year the company had $1.2 billion in revenue, according to a filing with the Securities and Exchange Commission.

Planet Fitness gyms, known for their “judgment free” approach featuring relatively non-demanding equipment and regimens, have more than 7 million members.

Indoor cycling fitness chain SoulCycle Holdings LLC is expected to debut later this year.

Before it made its debut, Brian Hamilton, chairman of data company Sageworks, said he believed Planet Fitness had “strong fundamentals” and that its IPO, as well as Fitbit’s, show investor interest in the fitness sector.

Newington, New Hampshire-based Planet Fitness owns 58 fitness centers and franchises more than 950 in the United States, Canada and Puerto Rico.