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Mark Wahlberg-Backed F45 Training Struggles in Market Debut

F45 Training Holdings, a fitness franchise backed by actor Mark Wahlberg, flounders on its first day of trading.

F45 Training Holdings  (FXLV) - Get Report, a fitness franchise backed by actor Mark Wahlberg, turned in a weak performance Thursday in its market debut.

After rising initially, shares of the Austin, Texas-based company were off slightly to $15.98. The stock's first trade was Thursday.

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F45 Training Holdings' initial public offering of 20.3 million common shares was priced at $16 a share, or $325 million.

The company said it was offering 18.75 million shares, and 1.6 million were being offered by a selling stockholder. 

F45 Training Holdings and the selling stockholder have granted the underwriters a 30-day option to purchase up to an additional three million shares.

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Last week, F45 Training gave a range of $15 to $17 for its shares in the IPO. After setting the price at the midpoint, the company expects to receive proceeds of $275.9 million.

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Among other things, the company said it intends to use the net proceeds from the offering to repay indebtedness, pay the purchase price for acquisition of certain assets of the Flywheel indoor cycling studio business, and to pay cash bonuses to certain employees.

One of the principal stockholders is MWIG, a special purpose private investment fund vehicle led by FOD Capital LLC, a family office investment fund, and Wahlberg, which acquired a minority investment in the company in March 2019 through an acquisition of convertible preferred stock.

Wahlberg is the star of such films as "Boogie Nights," "Shooter" and "Ted."

Founded in 2013 in Sydney, Australia, F45 Training said in its prospectus that it is "one of the fastest growing fitness franchisors in the United States based on number of franchises sold in the United States, focused on creating a leading global fitness training and lifestyle brand."

"In less than eight years, we have scaled our global footprint to 2,801 Total Franchises Sold in 63 countries, including 1,555 Total Studios, of which 1,415 had re-opened following temporary closures related to the COVID-19 pandemic, as of June 30, 2021," the company said.