ACT's Viva Leisure to be the first health club group to list on ASX
Yesterday was a big day for Viva Leisure after submitting its prospectus and listing application for an Initial Public Offering (IPO) with the Australian Securities Exchange (ASX).
First commencing operations in the ACT in 2004, if accepted Viva Leisure will become the only health club group currently listed. Once listed, Viva Leisure is expected to have a market capitalisation of $52.6 million.
“Today marks a significant milestone for Viva Leisure and the health and leisure industry in Australia. My board and I are delighted with the strong level of investor interest and support for our IPO. Being the only health club group listed on the ASX would be a significant opportunity to introduce the industry to new investors" aid Harry Konstantinou, Viva Leisure’s founder, CEO and Managing Director.
The group expects to generate $46.8 million of revenue for the 2020 financial year and $11.4 million of earnings before interest, tax depreciation and amortisation.
The companies vision is to become the number one health, fitness and aquatic centre operator in the market through expanding its geographical reach via organic growth and considered acquisitions, continuing to invest in its unique business model and increasing the product and service offerings to its members, who are core to the business.
The purpose of the IPO is to provide Viva Leisure with access to capital markets and added financial flexibility to pursue further growth opportunities and create a liquid market for its shares. Viva Leisure will raise $20 million of new money as part of its IPO with the proceeds to be used to support the Viva Leisure business model, fund expansion opportunities, provide working capital and pay the costs of the offer. In particular, part of the offer proceeds will be used to fund the acquisition of Fitness 24/7, a regional business with two health clubs in Albury (NSW) and one health club in Wodonga (Victoria). This acquisition will bring Viva Leisure’s total operating locations to 33 with a further 15 greenfield locations in various stages of opening. Viva Leisure expects to have 48 operational locations within the next 12-15 months.
For further information visit Viva Leisure.