Planet Fitness IPO Prices at $16 a Share

Planet Fitness Inc. priced its initial public offering at $16 a share, the high end of expectations, according to a person familiar with the offering.

The deal raised $216 million by selling 13.5 million shares, according to the person. The budget fitness chain, which is known for its $10 monthly memberships, and certain selling stockholders were planning to sell shares at $14 to $16 apiece, according to regulatory filings.

Planet Fitness's IPO comes the same day as a bloodbath in trading debuts. Both Amplify Snack Brands Inc. and Sunrun Inc. tumbled in their first session of trading on Wednesday. Amplify's 10% fall marked a rare setback for a high-profile IPO that priced above its range and likely signaled a warning to big-name consumer brands preparing to go public. Momentum investors piled into the Amplify deal, which was more than 20 times oversubscribed, looking for a big first-day pop. When there was none they bailed, a person familiar with the matter said, taking the price of the stock down with them.

The fall in Amplify's stock follows a string of strong first-day performances by consumer brand companies. Last month, Blue Buffalo Pet Products Inc. shares jumped 36% in their first day of trading. Fitbit Inc., another consumer company that made its debut amid much buzz earlier this year, also popped 48% after pricing above expectations.

Planet Fitness, which is majority owned by private-equity firm TSG Consumer partners, plans to begin trading on the New York Stock Exchange Thursday under the symbol "PLNT." The deal is being led by J.P. Morgan, Bank of America Merrill Lynch, Jefferies and Credit Suisse

Write to Corrie Driebusch at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires