Holmes Place Israel, a company that operates a chain of fitness clubs, today began a roadshow for investment institutions in Israel in preparation for an IPO on the Tel Aviv Stock Exchange (TASE). The company plans to offer shares worth NIS 30 million at a company valuation of NIS 325-350 million.
The Green Lantern group, led by Richard Hunter, Josef Elias, and Danny Ben-Rei, owns 45.2% of Holmes Place Israel's share capital, Poalim Ventures 14.85%, and Moti Ben-Moshe 12.4%.
Holmes Place, which was incorporated in Israel in 1997, currently has 113,000 subscribers and operates 34 fitness clubs spread throughout Israel, as well as 20 more fitness facilities in various external institutions and corporation. Some of the health and fitness facilities are classed under the Holmes Place and Go Active brands, while the company also operates low-cost fitness clubs under the Icon Fitness brand.
According to the prospectus for the IPO, implementation of the company's strategic growth plan will raise its EBITDA to NIS 75-100 million per year of full activity within 5-6 years of the prospectus date.
The beginning of the strategic growth plan in recent years is already reflected in 43% growth in the chain's average number of subscribers in the first half of 2017, compared with the end of 2015, and 62% growth in the number of the chain's clubs in the first half of 2017, compared with the end of 2015. This growth is reflected in the chain's business results in the first half of 2017, when it posted NIS 180.2 million in revenue and NIS 21.7 million in EBITDA, 32% and 45% more than in the first half of 2016, respectively. Holmes Place Israel's annual representative EBITDA (when all the company's clubs opened or acquired in 2017 reach the profit target) is NIS 50 million.
Published by Globes [online], Israel Business News - www.globes-online.com - on November 8, 2017
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