Mark Wahlberg-backed F45 Training lodges prospectus for $2bn US IPO

The Aussie fitness chain backed by Mark Wahlberg has lodged a prospectus valuing the group at $2bn.

Hollywood superstar Mark Wahlberg has been a keen supporter of F45 since early 2019.

Australian fitness chain F45 Training, backed by US heavyweight Mark Wahlberg, has set its sights on the New York Stock Exchange in a listing to value the firm at as much as $US1.5bn ($2bn).

The franchise group, which runs 45-minute high intensity interval training classes and started out of Sydney’s Paddington in 2013, filed its preliminary prospectus to the US SEC on Wednesday, detailing the issue of 20.3 million shares at between $US15 and $US17 a pop to raise $US276m ($371m) at the midpoint.

Led by chief and co-founder Adam Gilchrist and now based in Austin, Texas, the group has laid out its ambitious plans to expand its studio footprint in the US and the rest of the world, targeting similar per capita rates as Australia.

As at the end of the 2020 financial year, F45 had 785 local franchises, and 2800 globally.

Financials lodged alongside the prospectus show the group posted a net loss of $US25m for the year to the end of December, on revenue of $US82m.

That’s a decline from a $US12m loss the year prior, which the group has put down to temporary studio closures due to COVID-19.

Funds raised though Goldman Sachs and JP Morgan, among others, are earmarked to pay debt, including the purchase price of its Flywheel indoor cycling business, pay $US2.5m in cash bonuses and for working capital.

Wahlberg, who has been a supporter of the chain since early 2019 through his MWIG, and other key shareholders such as co-founder Rob Deutsch and Gilchrist will retain 72.4 per cent of the free float, while Caledonia, run by Sydney richlister Will Vicars, is among potential new investors, said to be mulling an investment of up to $100m in the IPO.

Alongside the return on his initial $US110m investment, Wahlberg has also scored a significant parcel of restricted stock units contingent on his continued promotional activities, with the share units to be settled in 2022.

The choice to a pursue a listing comes just a year after the group entered into a deal to merge with Crescent, which gave the group an enterprise value of $US845m but was ultimately abandoned thanks to widescale franchise closures during the pandemic.

As part of the expansion, F45 said it was actively pursuing partnerships with major universities and hospitality operations, corporations and military facilities and advancing concepts for older athletes such as Malibu Crew or Avalon House for men and women over 50 respectively.