Pure Gym To Brave EU Vote With June IPO Plan

Britain's biggest gym chain is planning to brave the looming vote on the UK's future in Europe by pencilling in a £500m public listing in June.

Sky News has learnt that Pure Gym, which operates roughly 150 clubs, has decided to launch a flotation in the immediate run-up to the referendum, which takes place on June 23.

Many companies have postponed corporate activity or transactions involving capital markets because of the uncertainty posed by the EU vote.

Warnings have mounted in recent weeks that sterling could take a hammering in the aftermath of a vote for Brexit, with the cost of buying protection against a plunge in the currency's value recently rising to levels even higher than those recorded during the banking crisis of 2008.

However, sources close to Pure Gym said the company believed its focus on the UK and the dearth of other company flotations competing for investors' attention in June would give it a potential advantage.

Pure Gym, which badges itself as the leading affordable chain in the country, could still opt to delay its listing in the event of extreme market volatility, they said.

The health and fitness clubs operator, which is majority-owned by CCMP Capital, a private equity firm, has appointed Jefferies and JP Morgan as the two lead banks on its flotation, with Credit Suisse (LSE: 0QP5.L - news) also involved.

Rothschild has been acting as an adviser to Pure Gym's board.

If it does list, it would be the latest in a string of deals in the sector.

Pure Gym tried to merge with The Gym Group in 2014 in a transaction that was blocked by competition regulators, prompting the latter to float last year.

Virgin Active has also changed hands, while LA Fitness was acquired last May by Pure Gym, and easyGym has been up for sale.

Pure Gym has more than 500,000 members, offering members 24-hour access and not tying them into lengthy contracts.

A spokesman declined to comment on the timing of its float.