Planet Fitness which should raise 216 million in the initial public offering IPO is trading under the symbol 39PLNT39 Photo courtesy Planet Fitness

Planet Fitness, which should raise $216 million in the initial public offering (IPO), is trading under the symbol 'PLNT.' (Photo courtesy Planet Fitness.)

Planet Fitness Shares Open Below IPO Price on New York Stock Exchange

Shares tumbled to $13.75 in the opening minutes of the session, but rallied to trade at just under $16 just before noon eastern.

Planet Fitness, Newington, New Hampshire, made its market debut on the New York Stock Exchange on Thursday, opening at $14.50 per share after pricing its 13.5 million common shares at $16.

The $16 per share price was at the top end of the $14 to $16 expected range. Shares tumbled to $13.75 in the opening minutes of the session, but rallied to trade at just under $16 just before noon eastern.

Planet Fitness, which should raise $216 million in the initial public offering (IPO), is trading under the symbol 'PLNT.'

Brian Hamilton, the chairman of data company Sageworks, said there may be an "enhanced appetite" on Wall Street for fitness-related offerings in the wake of Fitbit's successful IPO.

At today's low, Planet Fitness' valuation is approximately $1.36 billion.

"Planet Fitness is a company with strong fundamentals seeking a fairly reasonable valuation," Hamilton said. "After pricing at $16 per share, the company is valued at roughly $1.6 billion, or six times trailing revenues and 42 times trailing earnings; this is slightly rich for a company operating in their sector.  However, they've also been profitable for the last two years, and they are seeing net income and revenues increase year-over-year. "

This is a developing story. Return to ClubIndustry.com later today for a full report.

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