Pure Gym steps back from flotation plan

One of the largest flotations planned in London since the Brexit vote has been abandoned - just a month after it was announced.

Pure Gym Group, the country's biggest health and fitness chain, had been seeking to raise £190m though an initial public offering (IPO).

But it confirmed on Tuesday a story by Sky News the previous day that it was pulling the plug because of "market volatility."

The company, which has 169 sites and an 820,000-strong membership, had wanted to use the money to fund its expansion plans.

Chief (Taiwan OTC: 3345.TWO - news) executive, Humphrey Cobbold, said: "Given the challenging IPO market conditions, the board has decided not to proceed with a listing despite the strong interest shown by potential investors.

"Pure Gym's excellent growth track record and market leading position give us a solid platform for further expansion in the attractive gym market.

"This year alone we have opened 35 new Pure Gyms and had over 150,000 new members join.

"Current trading is strong giving us further confidence that we can capitalise on the significant market opportunity and encourage even more people to become fitter and healthier."

It is understood Pure Gym 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.