YogaWorks, Inc. made its public debut today, pricing 7.3 million shares at $5.50 each. The company managed to raise $40.2 million. However, shares of YogaWorks have already fallen 14% in midday trading.
This was YogaWorks’ second attempt at an IPO after deciding to delay its public debut on July 20th. At the time, the company cited poor market conditions.
YogaWorks managed to make a comeback to an IPO by offering its shares for a lower price. When the company originally filed with the U.S. Securities and Exchange Commission, YogaWorks wanted to offer 5 million shares at a price between $12 and $14. That would have allowed the company to raise up to $70 million.
Founded in 1987, YogaWorks is the first public yoga studio chain. The company has 50 studios across the U.S. in six metropolitan areas. In 2016, YogaWorks reported having more than 225,000 practitioners and 2.9 million visits.
Despite its success in becoming publicly traded, shares of YogaWorks are down 14% in midday trading. The company has caused concerns for some investors because it has posted net losses in the last two years.
However, because 40% of YogaWorks’ students are millennials, the company believes it has plenty of room for growth.
If investors remain interested in YOGA, the underwriters have been granted a 30-day option to purchase an additional 1.095 million shares. The closing of the offering is expected to occur on August 16th.
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