Mexican Gym IPO Falls Short

Grupo Sports World was set to raise Wednesday MXP857m in its IPO, pricing shares at MXP16.00, below the bottom of a MXP18.50-MXP22.00 target range. The Mexican health club chain owned by private equity fund Nexxus Capital was to sell 53.6m shares, according to a source close to the transaction, which indicates that some but not all of the 7.3m available overallotment would be exercised. The base deal includes 21.6m primary and 26.8m secondary shares, according to the prospectus. Nexxus, which bought Sports World in 2005 through its second PE fund, will see its stake go to around 20%, from 67%. It is Mexico’s fourth IPO this year, and second largest after retailer Chedraui. Santander managed the Sports World deal, with Actinver and Ixe as co-managers.