Shares in Dutch discount gym slide at launch

(Updates with financial background, banker's comments)

By Toby Sterling and Anthony Deutsch

AMSTERDAM, June 10 (Reuters) - Shares (Berlin: DI6.BE - news) in Dutch discount gym chain Basic-Fit fell when it launched its initial public offering on Friday, despite being priced at the bottom of its pre-offer range.

The stock was down 4 percent in Amsterdam trading after being priced at 15 euros ($17), underperforming the broader market. By contrast, shares in Dutch insurer ASR, which also started trading on Friday, rose 5 percent.

A banker familiar with Basic-Fit's bookbuilding process attributed its price slide largely to a 12 percent fall over the past month in Gym Group PLC shares, which had been seen as the closest comparison among a new breed of cut-price gyms.

"This is just the beginning," said founder René Moos shortly after the listing.

Basic-Fit has rapidly expanded across European capitals, employing fewer staff and more basic equipment than traditional gyms. Members can exercise with videotaped instructors, rather than paying for live classes.

It (Other OTC: ITGL - news) operates 351 locations in the Netherlands, Belgium, Luxembourg, France and Spain. The management plans to use roughly 340 million euros in proceeds from the listing to pay down debt and fund further expansion.

In Britain, low-cost operators include Pure Gym, EastGym and Anytime Fitness.

Owned by founder Moos and UK private equity firm 3i, Basic-Fit has increased sales quickly over the past two years, but remains loss-making.

It said it grew sales by 25 percent to 202 million euros in 2015, with adjusted earnings before interest, taxes, depreciation and amortisation, or EBITDA, of 60.1 million euros, up from 45.9 million euros EBITDA in 2014.

It posted a net loss of 23 million euros for 2015 and a 22.5 million euro loss in 2014.

The listing price implies an equity value of 820 million euros for Basic-Fit.

The issue included 24.6 million new shares and 2 million shares sold by current investors including 3i, together accounting for 48.8 percent of its new total share capital.

Proceeds from the new shares issued will be used to pay down net debt, which was 281.6 million euros as of March 31. (Reporting by Anthony Deutsch and Toby Sterling; Editing by Ruth Pitchford)