Viva Leisure enters trading halt as it looks to raise equity

ASX-listed fitness operator Viva Leisure has this week halted trading as it looks to raise $11.7 million in new equity.

Announced on Wednesday, stockbroker Petra Capital was lining up investors for the capital raising with funds expected to be revealed as of today.

Funds raised are set to be used to contribute to company’s balance sheet as well as backing for further acquisitions.

Despite gyms being shut during COVID-19 lockdowns, the Canberra-based company has increased memberships by nearly 34%, expanded location and doubled its revenue in the past financial year.

It has almost 300,000 members across all of its locations, with 126,006 members at its owned locations as of 30th June.

Operating more than 300 facilities across Australia and New Zealand, as well as India, of which 117 are owned and 193 are franchises, the business managed to maintain profitability in 2021, despite the challenging conditions for gyms and considers there to be material upside for the business as vaccination rates increase.

Viva Leisure ended the 2021 financial year with $12.94 million in cash.

On the market, its shares last traded at $1.71 per share on 24th August.