Shares of Xponential Fitness Inc. debuted Friday lower than its initial public offering price, which was downsized from the company’s earlier plans.
The Irvine, California-based fitness brands franchisor raised $120 million in its IPO of 10 million shares priced at $12 per share. The company previously sought to raise more than $200 million with an IPO of 13.3 million shares priced at $14 to $16 a share.
Xponential’s stock, which is trading on the New York Stock Exchange under the ticker symbol “XPOF,” opened lower at $11.20 a share Friday morning. It rose to a high of $12.50 a share by late afternoon in New York and was at $12.35 a share an hour before market close.
Xponential Fitness also granted underwriters a 30-day option to purchase up to an additional 1.5 million shares at the IPO price, less the underwriting discount.
BofA Securities, Jefferies and Morgan Stanley are joint lead bookrunners for the offering. Guggenheim Securities, Citigroup and Piper Sandler are bookrunners for the offering. Baird and Raymond James are acting as co-managers for the offering.
Xponential says it is the largest boutique fitness franchisor in the United States with over 1,750 studios operating across nine brands, including Club Pilates, Pure Barre, Cyclebar, Stretchlab, YogaSix and Stride.
The company in its IPO filing said it had system-wide sales of $442 million in 2020, down from $560 million in 2019, reflecting the impact of the Covid-19 pandemic on its studios. Xponential posted a net loss of $14 million in 2020, compared with a loss of $37 million in 2019.
Sales for the first quarter this year was $132 million, down from $160 million a year ago. Its first-quarter net loss was $5 million, compared with a loss of $2 million a year earlier.
