YogaWorks isn’t ready to give up on its dreams of going public.
Just three weeks removed from
pulling its first attempt at an IPO, citing market
conditions, the chain of 50 studios spread across six
US metropolitan areas is giving it another shot.
But there’s a catch: the company is now trying to raise just
two-thirds of the capital previously sought.
Yogaworks’ revamped offering is for up to 7.3 million shares
priced between $5.50 and $6.50, according to a
filing with the US Securities and Exchange Commission. The
revised pricing amounts to a possible valuation range of $40
million to $47 million.
That’s a far cry from its earlier attempt, which saw the company
attempt to offer 5 million shares at a price between $12-14 per
unit — a market value of $60 million to $70 million.
While some might attribute YogaWorks’ difficulties to a tough IPO
environment that most recently saw meal kit maker Blue
Apron limp to the finish line, it’s also possible potential
investors just weren’t sold on the company at that original
valuation. After all, the company is unprofitable at the moment,
posting net losses in each of the last two years, as well as in
the first quarter of 2017.
It remains to be seen whether YogaWorks will have more
luck at a more modest offering price. If they find
themselves unsuccessful again, it might be time to ask whether a
third time’s a charm, or if they’re better off staying private.