PureGym IPO: everything you need to know
Find out how you can gain exposure to PureGym ahead of its initial public offering (IPO) as well as after the listing. Learn how to trade or invest in PureGym shares with the UK's No.1 trading provider.1
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Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.
Contact us 0800 409 6789
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Contact us 08001953100
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.
Contact us 0800 409 6789
What’s on this page?
- Why trade or invest in the PureGym IPO with us?
- PureGym IPO: how to buy PureGym shares
- When could the PureGym IPO happen?
- What’s PureGym’s business model?
- Who are PureGym’s competitors?
- What will PureGym be valued at and what could the PureGym share price be?
- How do IPOs work?
- Get the latest IPO news
Why trade or invest in the PureGym IPO with us?
Stay ahead of the market
Trade or invest in the primary market
Invest at low costs
Buy shares from a minimalcommission of £32 or trade with low spreads and zero commission3
Deal on the UK’s best platform1
Trade or invest in the IPO with our award-winning platform1
Before the listing – primary market
If PureGym offers a primary market, you can subscribe to the listing and receive a stock allocation at the same time as institutional investors.
From day one of the listing
We’ll offer PureGym shares right away on the day they list. You can:
- Invest and own PureGym shares through share dealing from £32 commission (depending on where PureGym will list)
- Go long or short with derivative products such as spread bets or CFDs. Spread betting is commission-free and tax-free for certain individuals4
Trading vs investing in PureGym shares
Trading and investing are different in many ways. When trading PureGym shares with us following its listing, you’ll use spread bets or CFDs to speculate on share price movements. These derivatives enable you to take a position without owning the underlying shares. Plus, you could receive various tax benefits.4
With spread bets and CFDs, you can go long if you think the share price will rise or go short if you think it’ll fall. If your prediction is correct, you’ll make a profit, but if you’re wrong about the market movement, you’d take a loss.
Spread bets and CFDs are leveraged products, which means that you only need to commit a deposit upfront – called margin – to receive full market exposure. Bear in mind that, while margin can increase your profits, it can also increase your losses. This means that your loss could far outweigh the deposit amount, so it’s important to take steps to manage your risk.
When you invest in PureGym shares with us, you’ll use a share dealing account to buy and own physical stock. When share dealing, leverage isn’t available, so you must commit the full value of your position upfront. This increases your initial outlay compared to trading, but it also caps your risk at the price you paid for your shares (excluding additional fees).
Investing in stocks will make you a shareholder, eligible to receive dividends and voting rights if the company grants them. You’ll gain if the share price increases above the price of your opening position. If you decide to sell your shares for less than you paid to buy them, you’ll take a loss.
When could the PureGym IPO happen?
The PureGym’s IPO has not been confirmed yet, but there could be a listing in the first half of 2022. The group is reportedly seeking to raise capital to grow its footprint and pay off debts following a hefty loss during the Covid-19 lockdown.
The group reportedly lost £500,000 daily in Q1 2021 and £92 million in the first half of 2021 due to gym shutdowns imposed by the government during the pandemic.5
This is not PureGym’s first attempt at listing. It had IPO plans in 2016 but pulled the plug due to the uncertainty around Brexit.
What’s PureGym’s business model?
PureGym is the largest gym and fitness operator in the UK and the second biggest in Europe based on the number of sites. Pre Covid-19 the group had 1.9 million members and over 500 sites operating under various brands – PureGym in the UK, Fitness Word in Denmark and Basefit in Switzerland.
The PureGym Group is formed by Pinnacle Bidco PLC and other subsidiaries that include US private equity investors Leonard Green & Partners
- The group acquired LA Fitness in May 2015 and Soho Gyms in June 2018, both at an undisclosed amount. In December 2019, the group acquired Fitness World for $460.5 million6
- Its strategy is to occupy market leading positions in providing value for money to its customers, whilst delivering profitable growth for stakeholders. One way it does this by offering low-cost membership fees without enforcing ‘locked in’ contracts on members
- Soon after the government lifted Covid-19 restrictions on 30 September 2021, 18 new gyms were opened in the UK
- Flexible membership was introduced in Switzerland and improved revenue management implemented in Denmark
- Future plans include a strong focus on liquidity. The group plans to strategically rollout new gyms in areas that will yield targeted returns on capital
- Management and stakeholders have made £206 million worth of liquidity available by the end of Q3 2021 and there reportedly won’t be any leverage or interest cover covenant tests until August 20247
Who are PureGym’s competitors?
PureGym. has several competitors that also make tens to hundreds of millions of pounds in annual revenues. Some of PureGym’s main competitors include:
- The Gym, based in the UK
- Gymbox, based in the UK
- Xercise4less, based in the UK
- David Llyod Clubs, based in the UK
- GFG Fitness, based in the US
- Fitland, based in Belgium
Like PureGym, some of these competitors receive funding from private investors, but are not yet at IPO stage.
What will PureGym be valued at and what could the PureGym share price be?
PureGym, the UK’s largest gym and fitness operator, is rumoured to be valued up to £1.5 billion after its IPO.8 The listing share price will depend on the number of shares being issued.
How do IPOs work?
The IPO process involves a privately-owned company seeking to raise large amounts of capital by selling its shares in the open market on a stock exchange.
As with any investment, proper due diligence in the form of a comprehensive audit must first be conducted by an independent party.
To register with the relevant exchange commission, the company must get a statement. If the registration is approved, the company will list a set amount of shares on the stock exchange at a price determined by an investment bank that’s appointed as an adviser.
FAQs
How can I trade or invest in the PureGym IPO?
Once it has listed, you can trade on PureGym shares with us by using spread bets and CFDs to speculate on share price movements. These derivatives enable you to take a position without owning the underlying shares.
With spread bets and CFDs, you can go long if you think the share price will rise or go short if you think it’ll fall. If your prediction is correct, you’ll make a profit, but if you’re wrong about the market movement, you’d take a loss.
CFDs are leveraged products, which means that you only need to commit a deposit upfront – called margin – to receive full market exposure. However, bear in mind that while margin can increase your profits, it can substantially outweigh your deposit amount– so it’s important to take steps to manage your risk.
Investing in stock (share dealing with us) means you buy and own physical assets by committing the full value of your position upfront. You’ll make a profit if you sell your shares at a higher price than what you bought them for, and you can’t lose more than your initial outlay.
Why do people take a position on IPOs?
People take a position on IPOs with the aim to capitalise on the initial excitement surrounding the listing, especially if the company’s outlook is strong and a share price increase is expected.
If you subscribe to the IPO ahead of the offering, you’ll get a stock allocation at the same time and for the same price as institutional investors, without needing to wait to trade the shares on the secondary market.
What are the risks of trading or investing in IPOs?
The risks of trading or investing in IPOs include the increased volatility that comes with the initial excitement of the listing. This could result in your positions experiencing sudden shifts in price, potentially leading to heavy losses.
Remember that past performances of other IPOs are not an indication of future returns, so always take steps to manage your risk.
1 Best trading platform as awarded at the ADVFN International Financial Awards 2021 and Professional Trader Awards 2021.
2 Trade in your share dealing account three or more times in the previous month to qualify for our best commission rates. Please note published rates are valid up to £25,000 notional value. See our full list of share dealing charges and fees.
3 Zero commission on US shares, and just £3 on UK shares, with a foreign exchange fee of just 0.5%
4 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
5 The Guardian, 2021
6 Owler, 2021
7 Pinnacle Bidco PLC Interim Financial Report, 2021
8 The Times, 2021
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