From fitness to the stock market: Virgin Active reduces its debt ahead of its stock market listing
The group, best known for its gyms, is getting back on track as it prepares to go public with a fundraising target of £175 million
Virgin Active is gearing up for its IPO with a fundraising total of £175 million, according to investment holding company Brait Plc. The South African company, backed by billionaire Christo Wiese, is the fitness group’s largest shareholder, with an effective stake of 61.3 per cent. Wiese, through Titan and its affiliates, holds 39.3 per cent of Brait.
The investment company is planning a capital increase through a rights issue worth 2.5 billion rand, equivalent to approximately 133 million euros. £108 million raised from the transaction will be used to finance Virgin Active, whilst another portion will be used to repay the holding company’s convertible bonds amounting to £138 million.
Wiese and his affiliates will subscribe to the share offer and vote in favour of the transaction at the general meeting scheduled for 16 July. Virgin will use the capital to strengthen its financial position. How? By reducing debt, supporting the refurbishment of existing clubs and opening new centres, both in South Africa and internationally. These measures are expected to result in interest savings of £14 million a year.
The strengthening of the financial framework is part of the plan to list Virgin Active on the stock exchange. Brait had been targeting this project since 2024, when the company had indicated a possible listing on the London Stock Exchange in the second half of this year. Brait will issue the new shares at 1.51 rand each, representing a 25 per cent discount to the theoretical ex-rights price (TERP), calculated as the weighted average of the share prices over the five days preceding Thursday’s announcement. Consequently, the South African group’s shares plummeted by as much as 15% yesterday in Johannesburg, the sharpest fall since June 2024.
