Irvine-Based Xponential Fitness Revives Its Bid to Go Public

Venture capitalists are banking on the return of group exercise lessons and private coaching.

Xponential Fitness Inc., the boutique health model behind exercise studios like Rumble and Pure Barre, has filed paperwork for an IPO.

The Irvine-based firm introduced that it is going public on Monday and can commerce on the New York Stock Exchange beneath the ticker image XPOF.

The firm, which listed its placeholder providing at $100 million. had been planning to supply an preliminary public providing a 12 months in the past. But it was reportedly forced to put off those plans because the COVID disaster struck, forcing gyms internationally to close down.

Bank of America Corp., Jefferies and Morgan Stanley are main the deal. Pricing phrases weren’t disclosed, however a Bloomberg report from April, citing unnamed sources, mentioned it is going to be valued at near $1.3 billion.

The firm declined to touch upon the corporate’s IPO or Bloomberg’s earlier report.

Xponential pitches itself because the nation’s “largest boutique health franchisor.” Since its founding in 2017, the corporate has constructed and purchased 9 studios in 48 states and 10 international locations outdoors the U.S., in accordance with an announcement asserting the IPO. As of March 2021, it operates 1,775 storefront areas, in accordance with SEC paperwork.

The firm acquired its first two exercise manufacturers in September 2017 and has since nabbed franchise companions together with CycleBar, Stride and most lately, the boxing model Rumble. Those acquisitions gave it entry to coaching studio instructors and enabled the corporate to supply manufacturers with advertising and marketing and tech assist.

As vaccination charges choose up — and states ease restrictions on gyms and different indoor venues — the corporate predicts customers will return to boutique, in-person health lessons within the second half of 2021.

The pandemic stunted indoor exercise corporations throughout the nation. But as customers stayed dwelling to train, dwelling health club gear gross sales soared, in accordance with Pitchbook information. Most VC funding in 2020 was pushed by these at-home health merchandise and know-how like biking bikes and activity-tracking wearables additionally hit a stride.

Xponential adopted the development, launching a digital platform and streaming free exercises on Facebook and Instagram. The firm misplaced income however continued to open new studios and promote franchise licenses.

The world bodily exercise economic system — the market together with health tech and gear amongst different classes — is predicted to hit $1.1 trillion by 2023, in accordance with a current report from Pitchbook.

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