Let's get physical: Viva Leisure lists on the ASX
Written on the 7 June 2019 by David Simmons
Viva Leisure (ASX: VVA) has become the first health club group to list on the ASX this morning following a heavyweight $20 million IPO.
The Canberra-based company has operated in the health, fitness and aquatic centre space since 2004, and now has 33 different locations under its wing.
Its portfolio of brands includes Club Lime, Hiit Republic, Psycle Life, and most recently Fitness 24/7.
Viva's listing follows a $20 million IPO completed pursuant the release of its prospectus in May. The raise came from the issuing of 20,000,000 shares at an issue price of $1 per share.
The health and leisure company is growing fast, and has opened four locations in the ACT since April 2019. The group is on track to open a further four locations in the ACT and NSW before 30 June 2019.
These four new locations are in addition to its acquisition of the 24/7 Fitness in Albury/Wodonga.
Four more locations in the ACT are also on track to open in Q3 FY19. Three of these will be Hiit Republic centres and one will be a Club Lime centre.
Current membership of Viva Leisure centres sits at 49,600, but once the acquisition of 24/7 Fitness is complete the group expects to have 53,400 members by 30 June 2019.
"Today I am excited that Viva Leisure is the first dedicated health club operator to list on the ASX," says CEO and managing director of Viva Leisure Harry Konstantinou.
"The Company continues to deliver strong, profitable growth whilst also capitalising on the platform we have built over many years for an even bigger business in the future."
"The pace of expansion this financial year was a significant achievement for the Company in which we have acquired four clubs to date, with a further three clubs to be acquired and integrated as part of the Fitness 24/7 acquisition, opened eight greenfield clubs, with another four greenfield clubs to open this month."
"Shortly we will also achieve the milestone of 50,000 members (excluding the Fitness 24/7 acquisition), which demonstrates the demand and effectiveness of our business model which operates in all four segments of the fitness industry."
Business News Australia
Author: David Simmons