Planet Fitness Inc. (NYSE: PLNT) recently filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. Selling stockholders are offering up 10 million shares with an overallotment option for an additional 1.5 million shares. At Monday’s closing price of $19.49, the entire offering is valued up to $224.14 million.
Keep in mind that this company has a market cap of roughly $670 million, valuing this offering at about one-third of the total market cap.
The underwriters for this offering are JPMorgan, Merrill Lynch, Jefferies, Guggenheim, Baird, William Blair, Credit Suisse, Piper Jaffray, and Cowen.
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The company considers itself one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. The locations are typically 20,000 square feet, with Planet Fitness-branded cardio, circuit- and weight-training equipment. The base rate is $10 per month for standard membership.
Planet Fitness detailed in its report:
Our judgement-free approach to fitness and exceptional value proposition have enabled us to grow our revenues to $330.5 million in 2015 and to become an industry leader with $1.5 billion in system-wide sales during 2015 (which we define as monthly dues and annual fees billed by us and our franchisees), and more than 8.3 million members and 1,171 stores… System-wide sales for 2015 include $1.4 billion attributable to franchisee-owned stores, from which we generate royalty revenue, and $95.6 million attributable to our corporate-owned stores. Of our 1,171 stores, 1,113 are franchised and 58 are corporate-owned.
The company will not receive any proceeds from this offering. Instead the selling stockholders will.
Shares of Planet Fitness were trading down 6% at $18.25 on Tuesday, with a 52-week trading range of $13.23 to $19.65.
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