South African billionaire Christo Wiese’s Brait plots Virgin Active IPO in $152 million public market push

South African billionaire Christo Wiese’s investment holding company, Brait SE, is moving to reshape the future of Virgin Active through a planned public listing or sale process anchored by a R2.5 billion ($152 million) rights offer, disclosed alongside its full-year results for the year ended March 2026. The move marks a fresh phase in a long-running effort to reduce leverage across the portfolio while preparing its most valuable fitness asset for the public markets.

Brait, controlled by Wiese through his investment vehicle Titan, is positioning Virgin Active as the centerpiece of its next exit cycle. The group said the fitness chain, currently valued at about R9.39 billion ($571 million) on its books, is being prepared for a transaction that could take the form of an initial public offering or a sale. The rights offer, priced at R1.51 ($0.09) per share, carries a 43 percent discount to Brait’s net asset value per share once completed, underscoring the scale of the capital raise relative to the company’s valuation framework.

Brait restructures balance sheet For growth

The Virgin Active strategy sits within a broader balance sheet reset that has defined Brait’s direction since 2020, when net debt stood at R7 billion. That figure has since been reduced to R1.7 billion ($103.4 million), driven by asset disposals and the 2023 listing of Premier Group, once part of its core portfolio. The company is now seeking to apply a similar approach to Virgin Active, though on a significantly larger scale given the size and complexity of the business.

Before any listing can proceed, Brait said Virgin Active must first reduce leverage to more appropriate levels. The fitness chain will raise £175 million ($231.2 million) from existing shareholders, with Brait contributing £108 million to meet its proportional commitment. The funding is designed to bring Virgin Active’s net debt-to-EBITDA ratio down to 2.0 times, while also supporting its club refurbishment program and expansion pipeline.

Alongside the equity raise, Virgin Active is refinancing its existing debt facilities. Brait said the combined effect of the refinancing and capital injection will generate annual interest savings of £14 million ($18.5 million), giving the fitness chain greater financial flexibility as it prepares for a potential market debut. The company will also continue investing in club refurbishments and new openings, which remain central to its growth strategy. 

Virgin Active EBITDA jumps 37%, plans future public listing

Operationally, Virgin Active has returned to stronger trading conditions following pandemic-era disruptions. For the year, the business reported EBITDA growth of 37 percent to £110 million ($145.4 million), supported by new gym openings and upgrades across its network. Brait said the recovery in earnings and ongoing investment in the estate have created a clearer path toward an exit window. “Growth forecast from new gyms and the refurbishment program will position the business well for an exit in the next two years,” the company said.

At the group level, Brait reported a solid set of results that reflected both portfolio recovery and tighter cost management. Investment value gains rose 51.05 percent to R1.8 billion ($109.5 million), while operating expenses remained flat and finance costs declined 9.17 percent to R436 million ($26.5 million). The combination pushed profit for the year to R1.32 billion ($80.3 million), nearly double the R672 million ($40.9 million) reported in the 2025 financial year. Basic earnings per share increased just under 48 percent to 34 cents.

The company also provided its clearest timeline yet for Virgin Active’s potential listing. Brait said the transaction is now targeted for the second half of 2027 or the first half of 2028, a revision from earlier guidance that had pointed to 2026 and later to early 2027. The updated schedule reflects what the company described as current market conditions and the preparation still required before a listing can proceed. Brait has previously indicated to Bloomberg that the UK is the most likely listing venue, with a secondary offer expected in Johannesburg.

Virgin Active anchors Brait’s capital strategy

Christo Wiese remains the central figure behind the structure, with Titan holding an estimated 38 percent stake in Brait. Wiese built his fortune through Pepkor and his long tenure as chairman of Shoprite, before using Brait as the platform to acquire Virgin Active from Richard Branson’s Virgin Group in 2015. Since then, the fitness chain has become the group’s largest single asset, and its recovery has increasingly shaped Brait’s capital allocation decisions.

In parallel with the Virgin Active plan, Brait is also working to reduce exposure to other holdings. Its stake in UK fashion retailer New Look is currently valued at R723 million ($44 million). Earlier in the year, the group raised R1 billion ($63 million) through the disposal of 5.63 million shares in Premier Group Limited, following strong institutional demand.

The placing involved 5,633,802 ordinary shares sold at R177.5 ($11.16) each, representing a 3 percent discount to the 30-day volume-weighted average price as of Feb. 26, 2026. The transaction reduced Brait’s stake in Premier from 28.7 percent to 24.3 percent, leaving it with 31,307,954 shares. The shares accounted for about 4.4 percent of Premier’s total issued ordinary share capital. Brait said the proceeds were retained for general working capital, potential reinvestment in portfolio companies, and debt repayment.