Xponential Fitness, a roll-up of franchised boutique fitness brands with over 1,750 studios in North America, announced terms for its IPO on Friday.
The Irvine, CA-based company plans to raise $200 million by offering 13.3 million shares at a price range of $14 to $16. MSD Partners, D. E. Shaw & Co., and Redwood Capital Management have agreed to purchase $200 million worth of Series A Convertible Preferred Stock in a private placement. At the midpoint of the proposed range, Xponential Fitness would command a fully diluted market value of $711 million, or $878 million including the conversion of the Series A Convertible Preferred Stock.
Xponential Fitness states that it is a curator of leading boutique fitness brands across multiple verticals, and the largest boutique fitness franchisor in the US with over 1,750 studios operating across nine distinct brands. Its diversified portfolio spans a variety of fitness and wellness verticals, including Pilates, barre, cycling, stretch, rowing, yoga, boxing, dance, and running. Across its system, over 850,000 unique consumers completed nearly 20 million in-studio, live stream and virtual workouts in 2020.
Xponential Fitness was founded in 2017 and booked $104 million in revenue for the 12 months ended March 31, 2021. It plans to list on the NYSE under the symbol XPOF. BofA Securities, Jefferies, Morgan Stanley, Guggenheim Securities, Citi, and Piper Sandler are the joint bookrunners on the deal. It is expected to price during the week of July 19, 2021.
