Basic-Fit plans Amsterdam IPO to bulk up in Europe

(Adds expansion details, expected size of IPO, quotes)

By Thomas Escritt

AMSTERDAM, May 17 (Reuters) - Dutch gym chain Basic-Fit, which has more than 1 million members across Europe, plans to list nearly half of its shares on the stock market in an initial public offering which could value the company at around 1 billion euros ($1.1 billion).

Fifty two percent owned by British private equity firm 3i Group Plc, Basic-Fit would list "more than 25 percent and less than half" its shares, Chief Executive Rene Moos said.

The income would be used to pay down undisclosed debt levels and open new locations, it said.

The chain, which relies on automation and low staffing levels to keep down costs, has opened dozens of new clubs each year across Europe. It (Other OTC: ITGL - news) operates 351 locations in the Netherlands, Belgium, Luxembourg, France and Spain.

It is one of the main players in a fast-growing budget sector of gyms which, for monthly subscriptions of 25 euros or less, do not provide premium services like swimming pools, bars or restaurants.

It aims to saturate cities with gyms so that it becomes the "logical choice" for residents looking for a place to exercise between work and home, Moos told reporters.

In 2015, it reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 60 million euros on 202 million euros in revenue.

"Scale is important in the game we play and the IPO gives us more possibilities," said Moos, a former professional tennis player who entered the fitness business three decades ago.

The company plans further expansion in France and Spain in particular, where there are fewer such gyms than in the Benelux countries.

He said market conditions would dictate the precise timing of the offering, which could come "before or after the summer."

Many companies are rushing to carry out listings ahead of market turmoil that could result from a possible British vote to leave the European Union in a referendum on June 23, but Moos said a Brexit would not necessarily derail plans.

ABN Amro and Morgan Stanley (Xetra: 885836 - news) are acting as joint global coordinators and joint bookrunners. Barclays (LSE: BARC.L - news) , Deutsche Bank (LSE: 0H7D.L - news) and ING Group (Euronext: INGA.NX - news) are joint bookrunners and KBC, NIBC and Rabobank co-lead managers, it said. ($1 = 0.8842 euros) (Additional reporting by Anthony Deutsch; Editing by Mark Potter and Keith Weir)