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  • Health and leisure club manager Viva Leisure (VVA) has announced a $30 million institutional placement to support growth initiatives
  • Around 10.3 million new shares will be issued at $2.90 — representing a 4.3 per cent discount to the last traded price on Thursday, November 26
  • Viva Leisure says the capital raise will allow it to pursue acquisition opportunities and revamp new health and leisure facilities
  • Overall, the company’s five-year plan is to have 400 locations across Australia by 2025
  • Viva Leisure remains in a trading halt with shares last trading at $3.03 on Thursday, November 26

Viva Leisure (VVA) entered a trading halt this morning just before announcing a $30 million equity raising.

The fully underwritten equity raising is in the form of an institutional placement and will result in the company issuing around 10.3 million new shares at $2.90 per share to institutional investors.

The issue price represents a 4.3 per cent discount to the last traded price of $3.03 on Thursday, November 26.

The placement is expected to be completed by Monday, November 30 and new shares are expected to settle on Thursday, December 3 to begin trading the following day.

The health and leisure club company says the capital raise will enhance its financial position by allowing it to pursue future acquisition opportunities and accelerate the refurbishment of new locations.

Viva Leisure operates a vast portfolio of fitness and leisure clubs around Australia.

With all clubs now reopened for business, member visitations have recorded to pre-COVID levels.

Importantly, memberships have grown by 8764 since June 30 2020 and, as of November 24, there are 6175 members on requested suspension which is down from 15,000 suspensions in September.

In terms of growth initiatives, Viva Leisure has some things in mind. Its recent acquisition of Australian Fitness Management (the master franchisor of Plus Fitness) which is set to provide a pipeline of future acquisitions.

The company also expects to open over 20 locations between now and the end of FY2021 — 19 of which have been secured and leases executed. This will be part of achieving its goal of having 400 nationwide locations by 2025.

Viva Leisure last traded at $3.03 on Thursday, November 26.

VVA by the numbers
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