The fitness industry is one that’s been on quite the wild ride over the past two years. Indeed, pandemic-induced shutdowns have hurt these businesses and investors in a big way. However, with vaccinations continuing to pick up and the reopening thesis strong, investors are once again gravitating toward the fitness industry. For investors in F45 Training (NYSE:FXLV), the hope is that this momentum will continue for FXLV stock.
The fact that F45 chose to go public now isn’t really a head-scratcher. Investors are looking to put their money to work in companies leveraged to this economic reopening. Given the amount of pent-up demand for in-person fitness classes, investors are hopeful the future is going to be a lot brighter for these plays.
Today marked the first day of trading for F45. The company’s initial public offering (IPO) thus far appears to have gone about as smoothly as investors could have hoped for. Indeed, given the price action in the market today, this is particularly true.
Let’s dive into a few things investors may want to know about this new addition to the NYSE.
FXLV Stock Performing Well on Market Debut
- F45 Training is a fitness franchisor operating in the U.S., with global operations as well.
- The company’s focus is on high-intensity interval, circuit and functional training.
- Today, F45 issued 20.3 million shares of stock at a price of $16 per share.
- The company intends to use these proceeds to pay down debt and fund its acquisition of assets for the company’s indoor cycling studio business, as well as other general corporate purposes.
- Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) led the underwriting for this deal.
- Shares of FXLV stock rose to as high as $17.75 per share in early morning trading.
- Currently, FXLV stock remains above its IPO price, amid a broader market selloff this afternoon.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.