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Power Wind becomes first gym to list on TWSE

2019/03/15 16:52:19

Taipei, March 15 (CNA) Power Wind Health Industry Inc., also known as Fitness Factory, became the first gym chain to list on the Taiwan Stock Exchange (TWSE) when its shares began trading Friday.

At the end of the session, Power Wind shares closed at their issue price of NT$180 (US$5.82), with 143,000 shares changing hands on the main board, while the weighted index ended up 0.88 percent at 10,439.24 points.

The Power Wind stock came off an early high of NT$185.00 as investors locked in their early gains, dealers said.

Power Wind Chairman George Chen (陳尚義) said he was upbeat about the outlook for the local gym industry, which has seen an almost 25 percent compound annual growth rate in terms of sales since 2011 and has been attracting investors such as banks and convenience store chains.

Power Wind plans to open six new gyms by the end of the year in New Taipei, Taoyuan, Hsinchu, Taichung, Yunlin and Pingtung, which will bring its total number to 45, and hopes to increase that to 80 by the end 2025, according to Chen.

In March 2016, Power Wind launched a listing on the local over-the-counter market and the stock gained 25 percent in the past four and a half months on the announcement that it was about to be listed on the main board.

Last year, Power Wind posted a 32 percent annual increase in consolidated sales to NT$3.012 billion, a 61 percent growth of net profit to NT$458 million, and an earnings per share of NT$7.69.

On Tuesday, the company proposed to issue dividends of NT$6.35 per share, comprising NT$5.35 in cash dividend and NT$1 in stock dividend, on its 2018 earnings.

According to Ministry of Finance data, the local fitness center and health club industry grew by an annual 28.13 percent last year to register revenue of NT$10.08 billion.

(By Jiang Ming-yan and Frances Huang)