Australian fitness giant’s late $2B sprint into Wall Street

Australian founded F45 Training will have their hearts racing after a huge listing on the New York Stock Exchange on Thursday (US time)

The group rose as much as 11 per cent and then lost most of those gains in its trading debut after a $US325 million ($438 million) initial public offering.

The company is now valued at $US1.46 billion (AUD$2 billion)

F45 and an investor that includes Mark Wahlberg sold more than 20 million shares for $US16 each Wednesday after marketing them for $US15 to $US17.

The company had an uneven debut, opening at $US17 before falling below $US16. However, in a late sprint, it closed the day at $US16.20, a gain of 1.3 per cent on the offer price.

The listing was delayed by the coronavirus pandemic and then sidetracked by a blank-check merger deal that fell apart.

Adam Gilchrist, F45’s chief executive officer, said in a joint statement at the time that the “prolonged uncertainty around the pandemic” kept the combination from being completed.

Wahlberg invested in F45 through a private investment vehicle called MWIG LLC, which sold almost 1.6 million shares in the IPO.

 Wahlberg owns about 26% of the membership interest in MWIG, according to F45’s filings.

The fitness chain also lists Earvin ‘Magic’ Johnson, Jr, David Beckham, Greg Norman and Cindy Crawford as backers.

What is F45?

F45 Training has jumped six spots to #13 on Entrepreneur’s list of Fastest Growing Franchises for 2020. 

F45 started from one gym in Australia in 2013 and its franchises offer 45-minute functional high-intensity interval and circuit training classes based on a motto of “no mirrors, no microphones, no egos”.

 In the past several years, F45 has opened studios in over 48 countries, spreading its wings into untapped markets throughout the world. The fitness chain now has 1555 outlets around the world.

Franchisees are given a turnkey model, as well as support from F45 Training Headquarters in Los Angeles, CA.

Australian low-cost online brokerage firm Stake has seen a surge of interest from local investors wanting to buy shares in F45 upon its listing. “[F45] started around the corner from our offices in Paddington, it’s a great Australian story,” Stake co-founder Matt Leibowitz told The Age.

“A lot of people go to F45 and have probably used it. It is one of the more popular listings and it is one that people understand as they have touched and felt it.”

F45’s revenue fell by 11 per cent in 2020 to $82.3 million, but the fitness chain did not take as big a hit from the pandemic as expected.