Among the upcoming initial public offerings (IPOs) investors have on their radar is that of Life Time. The upcoming LTH stock IPO has enticed investors intrigued by the growth potential in physical gym offerings. Indeed, as we move forward into the post-pandemic future, reopening plays are generating outsized interest right now.
As a chain of fitness clubs, Life Time has grown to a company that could be valued as high as $4.1 billion. According to the recent filings of Life Time, the company brought in revenues of $1.9 billion in 2019, prior to the pandemic. Those bullish on a resurgence in sales to peak levels may thus want to consider this stock at this valuation.
Like other businesses that have been hammered by the pandemic, 2021 has been an intriguing time for investors looking to get into these businesses. On the one hand, investors can gain exposure to some high-growth assets with a positive outlook moving forward (at least according to bulls).
However, bears should note that consumer preferences may be structurally affected by the pandemic. Accordingly, these stocks carry higher-than-average risk right now.
That said, let’s dive into what investors may want to know about the upcoming Life Time IPO.
What to Know About the Upcoming LTH Stock IPO
According to various reports, Life Time is expected to go public on Oct. 7. The company is expected to list on the NYSE using the ticker “LTH” at this time. For investors looking for the latest and greatest IPO to jump on, the upcoming LTH stock IPO is an intriguing one, to say the least.
The company expects to sell 46.2 million shares at a price between $18 and $21 per share. At the higher end of the range, Life Time stands to raise more than $830 million from this IPO.
That’s a lot of growth capital for a growing fitness center chain.
Life Time expects to use these funds to invest in growing its market share and improving its offerings. As consumer demand for in-person fitness options increases, investors looking to gain exposure to this sector may want to take a diversified, regional approach. Accordingly, LTH stock may have some unique appeal.
Currently, the company’s valuation at a bit more than $4 billion doesn’t seem onerous. However, Life Time will have to show that the company can get back to pre-pandemic numbers, and continue to grow, for this valuation to make sense.
Accordingly, LTH stock is one I’m keeping on my watch list right now.
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.
