Planet Fitness, the budget gym chain known for its $10 monthly memberships and no-frills style, was off to a weak start in its public debut on Thursday.
Shares tumbled more than 10% to $14.30 in the first few minutes of trading, before recovering slightly and trading between $15 and $16 for most of the day. At the closing bell, the stock was right at $16.
Planet Fitness had priced its shares at $16 apiece on Wednesday night, which was at the high end of the $14 to $16 range it proposed in its initial filing. It also gave the company a valuation of $1.58 billion.
The offering raised $216 million by selling 13.5 million shares.
Planet Fitness, which is majority owned by private-equity firm TSG Consumer Partners, had more than 7.1 million members and 976 locations in 47 states as of the last quarter. Its revenue rose 33% to $279.8 million last year.
It is the latest in a string of consumer IPOs this year, including Fitbit and Blue Buffalo Pet Products, both of which had strong starts. SoulCycle, a New York-based cycling studio chain, also filed for an IPO last week.
The shares are trading under the ticker symbol "PLNT" on the New York Stock Exchange.
