We tell you more about the IPO and whether you can buy shares in the company.
What is F45?
F45 specialises in what it calls ‘innovative, high-intensity group workouts’ that are ‘effective, fun and community driven’.
The Texas-based company, which was founded in 2013, leverages a rich content database of over 3,900 unique functional training movements to offer new workouts every day consisting of both cardio and resistance training to its customers.
F45 currently has over 1,500 studios and over 2,800 franchises across 63 countries, including the US, Canada and the UK. Attendees pay a membership fee of about $60 to $65 per week.
One of the most high-profile backers of the company is award-winning actor and fitness enthusiast Mark Wahlberg, who invested in the company in 2019.
In addition to Wahlberg, other famous affiliates that have promotional relationships with the company include basketball legend Magic Johnson, former footballer David Beckham and former supermodel Cindy Crawford.
In June 2020, F45 agreed to merge with Crescent Acquisition Corp, a special purpose acquisition company. However, the deal failed to go through after the pandemic led to the shutting down of several of F45’s studios.
F45 IPO: What do I need to know?
F45 made its stock market debut on 15 July and was aiming for a $1.5 billion (£1.08 billion) valuation. Shares were listed on the New York Stock Exchange under the ticker symbol FXLV.
According to multiple news sources, F45 raised $325 million (£235 million) after selling about 20.3 million shares at $16 each. The company had been marketing its shares to investors at a price of between $15 to $17 per share.
On the NYSE, the stock price went as high as $17.75 per share on its first day of trading. It later drifted downwards to close the day at $16.20, 20 cents up from its offer price.
The company plans to use some of the funds from the IPO to pay off some of its debts, give cash bonuses to select employees. It also plans to buy assets from indoor cycling boutique chain, Flywheel Sports, which closed last year.
Can I buy shares in F45?
As of 15 July, the company is publicly traded. That means that you can buy its shares using a share dealing account.
If you don’t have a share dealing account, you’ll need to open one, specifically one that gives you access to the NYSE. We have reviewed some of the top providers of share dealing accounts in the UK to help you make a good choice.
Are F45 shares a good buy?
The F45 IPO comes on the back of a year to forget for the health and fitness industry. A large percentage of gyms and fitness studios across the world were closed as a result of Covid-19 prevention measures.
Not surprisingly, F45’s revenue dropped in 2020 due to a large number of its studios being closed. In total, revenue for the year ending 31 December 2020 was down 11%. The company also experienced a loss of $25.3 million (£18.3 million), up from $12.6 million (£9.11 million) a year earlier.
Despite currently being an unprofitable business, there’s reason to be optimistic about the future. Around 1,400 of the companies’ studios (more than 90%) have reopened as of 30 June 2021.
And according to its Securities Exchange Commission (SEC) filing, studios that have reopened following temporary closures have been quick to return to pre-pandemic levels of weekly revenue. In fact, as of 30 June 2021, the weekly revenue of the company’s 618 studios that have been reopened the longest has exceeded pre-pandemic levels.
Before you invest, however, make sure you do your homework and seek professional advice if necessary.