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A once in a “life time” IPOINTL

A once in a “life time” IPO

The US-based fitness chain operator Life Time Group is targeting a US listing at a $4.2b valuation and an issuance of 46.2m shares priced at $18-$21 per share. The company is set to raise $970.2m in listing proceeds, if it prices at $21/share.

This won’t be Life Time’s first entry into the markets, though, as the firm was previously publicly listed in 2015, before an acquisition by PE firms, Leonard Green & Partners and TPG, saw it delisted. The fitness industry took a hit during Covid-19 and Life Time was no different as it shuttered off all its centers in March 2020, leading to a net loss of $360m. With over 1.4m members and 150 centers as of July 2021 though, the firm has weathered through the tough times — thanks to its pivot during the pandemic towards digital and live-streamed fitness classes.

why it matters

The US is in an IPO frenzy — Life Time’s listing is one of the nearly 300 IPOs that have taken place so far into 2021. The number far surpasses 2020’s full-year figure of 218 and is nearing figures closer to that seen during the 1990s tech boom.