Amplify’s shares were priced well above the expected pricing range, while Sunrun’s IPO was priced at the mid-point.
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Shares of the budget fitness chain, which is known for its $10 monthly memberships, opened at $14.50, 9.4% below their IPO price.
Fitness club operator Planet Fitness Inc’s shares fell as much as 14 percent in their debut on Thursday, reflecting investor unease with companies that are listing at lofty valuations. The deal raised about $216 million by selling 13.5 million shares.
Before it made its debut, Brian Hamilton, chairman of data company Sageworks, said he believed Planet Fitness had “strong fundamentals” and that its IPO, as well as Fitbit’s, show investor interest in the fitness sector. FIT, -13.18% reported quarterly earnings for its first time since going public in June. Shares tumbled to $13.75 in the opening minutes of the session, but rallied to trade at just under $16 just before noon eastern. ‘It’s the atmosphere first, and then the price, it’s not the meat market environment thing found at most gyms, ‘ said Planet Fitness CEO Chris Rondeau in an interview with TheStreet about why the chain has become popular with consumers.
The company was valued at about $1.6 billion at that price.
Planet Fitness, which is majority owned by private-equity firm TSG Consumer partners, began trading on the New York Stock Exchange Thursday under the symbol “PLNT”.
The Newington, New Hampshire-based company, founded in 1992, has said it aims to more than quadruple its fitness centres to more than 4,000 over an unspecified period.
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The underwriters for this offering are JPMorgan, Merrill Lynch, Jefferies, Credit Suisse, Guggenheim, Baird, William Blair, Piper Jaffray and Cowen.
