Pure Gym scraps LSE flotation on 'market volatility' concerns

The UK's biggest gym operator has abandoned its flotation on the London Stock Exchange – just a month after it announced its plans.

Pure Gym, which runs 169 outlets, and has more than 820,000 members, said last month that it would raise £190m to help fund expansion.

But today (11 October) it scrapped that plan, blaming "market volatility".

Chief executive, Humphrey Cobbold, said: "Given the challenging initial public offering market conditions, the board has decided not to proceed with a listing despite the strong interest shown by potential investors.

"Current trading is strong, giving us further confidence that we can capitalise on the significant market opportunity."

Pure Gym was part of a flurry of firms seeking listings on the stock market, seen as a sign of investor appetite reviving in the UK flotation market, which had been stagnant in the run up to June's Brexit vote.

Price comparison site GoCompare, waste management group Biffa, and financial software firm Misys have all confirmed stock market flotations in recent weeks.

But the current collapse in sterling and growing uncertainty about Britain's relationship with the European Union, triggered in part by speeches by senior politicians at the Conservative Party conference, have dampened confidence.