Planet Fitness's Stock Slumps After Shareholders Look To Sell Off Stock

Shares of Planet Fitness Inc. slumped 4.3% in premarket trade Tuesday, after the fitness center operator announced a secondary public offering of 10 million shares. The company said it would not receive any proceeds from the offering, as all of the shares are being offered by selling shareholders. The offering represents 27% of the 36.6 million shares outstanding, according to FactSet. The selling shareholders will grant the underwriters of the offering options to buy up to an additional 1.5 million shares. On Monday, the stock closed at a record $19.49, which was 22% above its IPO price of $16; the company went public on Aug. 6, 2015. It has run up 25% over the past three months, while the S&P 500 has tacked on 1.5%.