August 4, 2021

INDAC

Keep Fit & Healthy

Wahlberg-Backed F45 Training Trades Flat After $325 Million IPO

2 min read

(Bloomberg) — F45 Training Holdings Inc., the provider of group fitness classes backed by actor Mark Wahlberg, rose as much as 11% and then fell near the offer price in its $325 million initial public offering.

In a listing that was delayed by the coronavirus pandemic and then sidetracked by a blank-check merger deal that fell apart, F45 and an investor that includes Wahlberg sold more than 20 million shares for $16 each Wednesday after marketing them for $15 to $17.

The shares opened Thursday at $17 and were trading at $16.05 at 1:05 p.m., giving F45 a market value of $1.45 billion.

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.

F45, whose name is a mash-up of “functional training” and the 45-minute duration of its classes, started in Australia and is now based in Austin, Texas, had filed confidentially for an IPO, Bloomberg News reported in January 2020. Within a few months, it had put those plans on ice as the pandemic forced gyms and similar businesses to close.

In June 2020, F45 instead struck a deal to go public by merging with Crescent Acquisition Corp., a special purpose acquisition company, or SPAC. That agreement, which would have valued the combined company at $845 million including debt, was terminated in October.

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.

For the first three months of 2021, F45 had a net loss of $37 million on revenue of $18 million, compared with a loss of $733,000 on $25 million revenue during the same period last year, according to its filings.

The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares are trading Thursday on the New York Stock Exchange under the symbol FXLV, which incorporates the Roman numeral for 45.

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