Categories Health Care, IPO, Others

iFIT Health & Fitness to raise $600 mln in IPO. Here’s what you need to know

The company looks to raise around $600 million by offering 30.77 million shares at an estimated price between $18 and $21 per share

The technology and healthcare industries have dominated the IPO market in the recent past, but it seems the spotlight is shifting to fitness and wellness. After a few closely-watched market debuts in the first half, a slew of fitness IPOs is lined up for the year.

30.8 Mln Shares

iFIT Health & Fitness Inc. this week revealed plans to raise capital through an initial public offering, so as to take the business to the next level. It will be offering around 30.77 million shares for about $18-21 per share. At the midpoint of the price range, the offering would generate proceeds of around $600 million.


Read management/analysts’ comments on quarterly reports


After obtaining regulatory sanction, the shares will start trading in the Nasdaq Global Select Market under the ticker symbol IFIT. The group of book-runners would be led by Morgan Stanley (NYSE: MS), Bank of America Securities, and Barclays.

Headquartered at Logan in Utah, iFIT is a market leader in connected fitness software and equipment, with a client base that is spread across the globe.  The company, which owns popular brands like NordicTrack and ProFrom, was known as CON Health & Fitness until it was rechristened as iFIT a few months ago, to better represent omnichannel offerings like connected health/fitness software and devices.

At-home Workout

The company’s interactive fitness services, supported by an online workout ecosystem and digital content, witnessed strong adoption during the pandemic due to the shift to at-home fitness routines. After the most recent funding round, the company is valued at $7 billion. Scott Watterson, who co-founded the company, is the current chairman and CEO.

ipo news

iFIT is estimated to have sold more than 10 million interactive fitness products with a gross merchandise value of $2.8 billion in fiscal 2021. It reported total revenues of $1.75 billion for the year, which is more than double the revenue generated a year ago. However, the company’s net loss widened to $516.7 million from $98.5million in fiscal 2020, hurt mainly by a sharp increase in operating expenses. iFIT’s subscription offering has more than six million subscribers worldwide.

Competition

A few months ago, Xponential Fitness (XPOF) listed its stock pursuant to a $100-million offering, setting the stage for intense IPO activity involving fitness companies. Another fitness firm that went public this year is F45 Training Holdings (FXLV).


Here’s what to know when First Watch Restaurant Group goes public


The IPO spree is going to intensify competition, though the fitness market remains largely untapped.  It is estimated that fitness and wellness spend would reach around $6 trillion this year. Peloton Interactive, Inc., (NASDAQ: PTON) iFIT’s main rival, has been operating as a public company since 2019.

_________________________________________________________________________________________________________________

Stocks you may like:

Apple (AAPL) Stock

Microsoft (MSFT) Stock

Alphabet (GOOGL) Stock

International Business Machines Corp. (IBM) Stock

_________________________________________________________________________________________________________________

Most Popular

AVGO Earnings: Highlights of Broadcom’s Q4 2022 report

Chipmaker Broadcom, Inc. (NASDAQ: AVGO) Thursday reported better-than-expected earnings and revenues for the fourth quarter of 2022. Net profit was $10.45 per share in the final three months of the

COST Earnings: All you need to know about Costco Wholesale Corporation’s Q1 2023 earnings results

Costco Wholesale Corporation (NASDAQ: COST) reported first quarter 2023 earnings results today. Net sales increased 8.1% to $53.44 billion compared to the same period a year ago. Comparable sales were up

Three factors that bode well for Campbell Soup (CPB) in the current environment

Shares of Campbell Soup Company (NYSE: CPB) were up 1% on Thursday. The stock has gained 30% year-to-date and 34% over the past 12 months. The food company started the

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top