Pure Gym Pulls U.K. IPO Plans Due to Uncertain Market OutlookBy and
Pure Gym Group Plc, a no-frills fitness-center chain, decided to pull its U.K. initial public offering due to uncertain market conditions.
“Given the challenging IPO market conditions, the board decided not to proceed with a listing despite the strong interest shown by potential investors,” Chief Executive Officer Humphrey Cobbold said in a statement Tuesday.
The company was expected to start trading on Tuesday and had demand for the base level of shares on sale, which excludes an over-allotment, according to terms seen by Bloomberg. Investors’ interest in the IPO was weaker than expected, people with knowledge of the process said Monday, asking not to be identified as the details of the sale are private.
European IPOs have struggled in recent weeks, with Telefonica SA pulling the sale of its infrastructure unit Telxius Telecom SA on poor demand. Other companies that made it to the finish line, such as Nordics payments firm Nets A/S, fell about 9 percent in the first few weeks of trading, despite strong investor appetite leading up to the listing.
An IPO in the current environment “is not in the long-term interests of the company and its stakeholders,” Pure Gym said in the statement.
Companies in the U.K. announced about $8 billion in IPOs this year, compared with $14 billion in the same period last year, according to data compiled by Bloomberg. Sellers held off on deals ahead of Britain’s vote to leave the European Union. Still, volumes have started to pick up in the second half of the year with companies including software business Misys Ltd. announcing plans for sales.