Speculation is once again rife of a high-profile IPO for Virgin Active, although this time the business is said to be preparing to float in South Africa.
Virgin Active chair Richard Baker – who recently became chair of Costa coffee chain owner Whitbread – has been replaced by South African retail veteran Simon Susman, prompting several reports suggesting the firm is eyeing a Johannesburg stock exchange listing next year.
The gym chain, part-owned by Sir Richard Branson’s Virgin Group and private equity firm CVC – which also has a
stake in attractions giant Merlin Entertainments – has around 260 health clubs worldwide, of which 112 are in South Africa. These clubs are reported to generate around 60 per cent of the company’s earnings.
This is the latest in a long line of reports that Virgin Active will go public. The
most recent flurry came in May, when it was reported the firm was lining up an IPO or sale in the UK, although sources at the time suggested that a secondary listing could take place in South Africa.
Incoming chair Susman was quoted in
The Daily Telegraph as saying: “I am very much looking forward to joining the board as the company continues its growth, both in its existing territories and in new markets.”
Virgin Group has also announced it is to take to the high seas through
new venture Virgin Cruises, with the potential for on-board Virgin Active clubs to help guests stay ship-shape.
