Gym expansion: Viva Leisure raising $25m

Gym operator Viva Leisure is tapping the market for $25m through Ord Minnett.

Shares are being sold at $2.20 each, a 15.4 per cent discount to the company’s last closing price of $2.60 per share.

In a term sheet, investors have been told that the funds are being used to strengthen the company’s balance sheet to pursue strategic acquisitions, accelerate refurbishment of existing locations and for new site rollouts.

The raise will include a $2.9m placement and a one for six pro-rata accelerated non-renounceable entitlement offer to secure $22.1m.

Viva operates over 40 health clubs in the Australian Capital Territory, New South Wales and Victoria.