Fitness club chain Pure Gym Group said on Wednesday it would raise about £190 million in an initial public offering of shares on the London Stock Exchange.

The company, which is owned by funds advised by CCMP Capital Partners and Hermes GPE, declined to comment on how many shares it would sell or their expected price.

Chief executive Humphrey Cobbold said the market was the right place for the company to access capital, despite post-Brexit turmoil.

The National Institute of Economic and Social Research, a leading think tank, said last week that there was a significant chance of a recession in the UK by the end of next year.

“Pure Gym is strong enough to trade through what may be some choppy waters ahead,” Mr Cobbold said, adding that its low cost model would help it to withstand a slowdown in the economy.

The company had not witnessed a fall in customer numbers after Brexit, Mr Cobbold said.

Established at the height of the financial crisis in 2008, Pure Gym charges less than £20 per month on its standard membership contracts, helping it grab market share from rivals who charge up to £100.

The company said its first-half revenue rose 51 per cent to £76.6 million. It is the UK's largest gym operator by the number of outlets, according to market intelligence firm Leisure Database Co. – (Reuters)