STJ Advisors acted as independent advisor to The Gym Group and its shareholders Phoenix Equity Partners and Bridges Ventures on its £125 million Initial Public Offering on the London Stock Exchange. The Gym Group is a leading provider of high-quality low-cost gyms across the UK and is the first gym operator to list in the UK in the last 15 years and one of the highest growth companies in the UK mid-cap universe with 56% EBITDA CAGR since 2012.
The IPO was structured as a fixed price offering at 195p per share giving the company a market capitalisation of £250 million, which represents over 17x 2014 EBITDA multiple. The launch followed an innovative reverse enquiry anchor marketing process to de-risk the offering process.
STJ advised the Company and Shareholders on all aspects of the IPO process – bank selection and terms of appointment, crafting of the equity story, timing of the offering, early-look investor meetings, site visits, pre-deal investor education, offer structure, valuation feedback analysis, anchor marketing, roadshow, bookbuilding, sizing and allocations.