Business

Expanding Latin American gym chain SmartFit files for IPO

GIC, CPP and asset management firm Dynamo have agreed to invest up to BRL 750 million ($141 million) in the IPO

Smart Fit unit in Rio de Janeiro
Photo: Shutterstock
  • The planned IPO move comes as many fitness chains have been forced to close gyms during coronavirus lockdowns;
  • SmartFit posted net revenues of BRL 1.26 billion in 2020, down 37% from the previous year.

Latin American gym chain SmartFit has filed for an initial public offering (IPO) to raise funds for its expansion, a Brazilian securities filing showed.

The planned IPO move comes as many fitness chains have been forced to close gyms during coronavirus lockdowns.

SmartFit has used the period to embark on acquisitions and increase its footprint in Latin America, where it has 928 gyms in 13 countries and 2.4 million clients.

READ ALSO: Largest gym network in Latin America, Smartfit negotiates merger with Mexican Sports World

An IPO filing on Wednesday by SmartFit, which has private equity firm Patria Investiments, Canada’s CPP Investments and Singapore’s GIC among its investors, did not mention its planned valuation.

GIC, CPP and asset management firm Dynamo have agreed to invest up to BRL 750 million ($141 million) in the IPO, if SmartFit raises at least BRL 1.75 billion in the offering and prices its shares at up to BRL 420 each.

READ ALSO: Pandemic boosts investment rush and consolidation of private businesses in Brazil’s private health sector

SmartFit posted net revenues of BRL 1.26 billion in 2020, down 37% from the previous year. Its adjusted earnings before interest, tax, depreciation and amortization fell to BRL 53.8 million in 2020, from BRL 551.3 million in 2019.

READ ALSO: Wellness-benefits startup Gympass focuses on digital solutions and resumes growth

Itau BBA, Morgan Stanley and Santander Brasil are managing the IPO, the filing showed.

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