TPG-backed Life Time’s shares drop in bleak market debut

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(Businesshala) – Fitness center operator Life Time’s return to the public markets was met with a lukewarm response on Thursday, with shares opening 8% below their offer price, prompting investors to be cautious about choppy trading in recent weeks. live.

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The slow start suggests the market is still restless for an initial public offering, even though the US Senate reached an agreement later this month to prevent potential loan defaults.

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While the ceasefire fueled a rally in stocks on Thursday, markets may face another volatility in December, when the recovery of debt limits is about to end.

Inflation concerns, rising energy prices and defaults in Chinese property developers tied to Evergrande’s fortunes have also worried investors and added to the wild price volatility in the markets.

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Earlier in the day, exercise equipment maker IFIT postponed its US IPO citing market conditions.

Shares of Life Time, backed by private equity giant TPG, opened lower at $16.57 from its IPO price of $18 per share. They rose slightly in afternoon trading, valuing the company at $3.46 billion.

“Even in an unsustainable market, Life Time was able to pull together a huge IPO. And I think that sums up what my team has built here,” said Founder and CEO Bahram Akradi said.

Founded 30 years ago, Life Time provides health and fitness content to 1.4 million members. It doubled down on its digital offerings in March 2020 after the pandemic forced the closure of all centers.

Chanhassen, Minnesota-based Life Time was taken private in 2015 by Leonard Green & Partners and TPG in a $4 billion deal.

Life Time raised $702 million in its underfunded IPO.

Goldman Sachs & Company, Morgan Stanley and BofA Securities were the principal underwriters of the IPO.

Reporting by Niket Nishant in Bengaluru and Echo Wang in New York; Editing by Maju Samuel


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