Low cost US chain Planet Fitness has announced it is to go public as it bids to turbocharge growth and ultimately reach 4,000 sites.

The chain is forecast to be valued at around US$1.58bn (€1.4bn, £1bn) in its initial public offering, having announced its intention to float on the New York Stock Exchange.

In a regulatory filing this week, the company said it expects the offering of 13.5 million class A shares to be priced at $14-$16 per share, raising up to US$216m (€197m, £138m). Planet Fitness is selling 9.1 million shares, while selling stockholders are offering the rest.

Planet Fitness – which is majority-owned by private equity firm TSG Consumer Partners – has in excess of 7 million members across 976 US gyms, most of which are franchised. The company was founded in 1992 by Michael Grondahl and was one of the earliest pioneers of the budget sector, with its most basic package currently costing just $10 (€9, £6.40) per month.

Planet Fitness has enjoyed strong returns in recent years, with revenue rising 33 per cent to reach US$279.8m (€255m, £179m) in 2014, as net income increased 45 per cent to US$37.3m (€34m, £24m).

The news of another public offering in the US fitness sector will no doubt cheer investors after the staggering response to Fitbit’s listing earlier this year. Wall Street was awash with excitement for the offering, which saw both the share count (34.5 million shares) and price range (US$20) increased due to demand, while shares jumped 60 per cent on opening.