Pure Gym pulls £190m share sale as IPO markets hit choppy waters

Pure Gym Group, Britain's biggest health and fitness chain, will abort plans for a stock market flotation on Tuesday amid signs that turbulence in some financial markets is affecting investors' sentiment towards companies seeking to go public.

Sky News has learnt that Pure Gym, which trades from 169 sites and has 800,000 members, will announce that it has decided not to proceed with an initial public offering (IPO), which would have been one of the largest in London since June's vote to leave the European Union.

Sources said that although the company had received sufficient orders from investors for the shares, challenging IPO market conditions had persuaded Pure Gym's board members to abandon the listing.

Pure Gym, which declined to comment, could revive the listing plan when markets stabilise, according to people close to the company.

The London listings market has seen a revival since June's referendum, with companies such as the medical devices maker ConvaTec and Biffa, the waste recycling group, announcing plans to go public.

However, the sharp fall in the value of sterling amid uncertainty about the terms of the UK's EU exit has caused some stock market investors to become anxious even as the blue-chip FTSE-100 index has continued to surge.

Other floats, including that of Telxius, an infrastructure company owned by Spain's Telefonica (LSE: 826858.L - news) , have also been abandoned in recent weeks.