YogaWorks Inc. on Friday completed its initial public offering, but at a substantially discounted price than originally planned.The company began trading on Friday, raising about $40 million, or $5.50 a share. That’s substantially down from the $13 a share, it had hoped to raise last month. The company on July 20 postponed its IPO due to “market conditions.”Rosanna McCollough, chief executive officer of YogaWorks said, “Three or four weeks ago we did a road show and had a positive response to our story and mission. It was difficult to finalize a deal at the original price line.” She added that the company continued to have ongoing discussions with investors and completed the IPO at the “right valuation.”The ceo said her focus now is on “beginning to execute on our growth strategy. We have the right long-term partners who believe in our company, our growth plan and I need to make sure I deliver on that plan.”So far there are 50 studios, mostly on the East and West Coasts. The registration statement filed by the company with the Securities and Exchange Commission, or Form S-1, said the studios are located in Los Angeles, Orange County and Northern California; Manhattan; Boston, and the Baltimore-Washington, D.C., area. The company also offers a teacher training program, as well as operate online at MyYogaWorks.com, which in 2016 streamed almost 700,000 classes to 18,000-plus users in more than 145 countries.According to McCollough, the company isn’t yet profitable and has been spending on investments to prepare for the IPO. The plan for growth is to continue adding studios “at a faster rate than we are adding regional and corporate overhead,” she said. The company is considering “spanning out from existing regions” and has had “success buying studios in new regions,” the ceo noted.The studios also sell yoga apparel and gear. McCollough said she’s continuing to look for “unique brands that offer health and wellness,” and said the company would consider offering its own branded merchandise down the road, after it has had a chance to scale up first.The S-1 filing said revenues in 2016 were $55.1 million, and that it lost $9.5 million. It also noted that its student base is 80 percent female and 20 percent male, with more than 60 percent earning over $75,000 in annual income. The age range of its students are from 25 to 64.The company — which sold 7.3 million shares — trades on the Nasdaq Global Market under the symbol “YOGA.” Great Hill Partners, which acquired the company in 2014 from Highland Capital Partners for about $45 million, retains a 70 percent interest in YogaWorks. Shares were trading down more than 13 percent, at $4.76, in early afternoon trading.
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