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(Updates with financial background, banker's comments)
By Toby Sterling and Anthony Deutsch
AMSTERDAM, June 10 (Reuters) - Shares in Dutch discount gymchain Basic-Fit fell when it launched its initialpublic offering on Friday, despite being priced at the bottom ofits pre-offer range.
The stock was down 4 percent in Amsterdam trading afterbeing priced at 15 euros ($17), underperforming the broadermarket. By contrast, shares in Dutch insurer ASR,which also started trading on Friday, rose 5 percent.
A banker familiar with Basic-Fit's bookbuilding processattributed its price slide largely to a 12 percent fall over thepast month in Gym Group PLC shares, which had been seenas the closest comparison among a new breed of cut-price gyms.
"This is just the beginning," said founder René Moos shortlyafter the listing.
Basic-Fit has rapidly expanded across European capitals,employing fewer staff and more basic equipment than traditionalgyms. Members can exercise with videotaped instructors, ratherthan paying for live classes.
It operates 351 locations in the Netherlands, Belgium,Luxembourg, France and Spain. The management plans to useroughly 340 million euros in proceeds from the listing to paydown debt and fund further expansion.
In Britain, low-cost operators include Pure Gym, EastGym andAnytime Fitness.
Owned by founder Moos and UK private equity firm 3i,Basic-Fit has increased sales quickly over the past two years,but remains loss-making.
It said it grew sales by 25 percent to 202 million euros in2015, with adjusted earnings before interest, taxes,depreciation and amortisation, or EBITDA, of 60.1 million euros,up from 45.9 million euros EBITDA in 2014.
It posted a net loss of 23 million euros for 2015 and a 22.5million euro loss in 2014.
The listing price implies an equity value of 820 millioneuros for Basic-Fit.
The issue included 24.6 million new shares and 2 millionshares sold by current investors including 3i, togetheraccounting for 48.8 percent of its new total share capital.
Proceeds from the new shares issued will be used to pay downnet debt, which was 281.6 million euros as of March 31. (Reporting by Anthony Deutsch and Toby Sterling; Editing byRuth Pitchford)
