Private club Soho House plans to float on the NYSE

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Soho House is set to list on the New York Stock Exchange at a potential valuation of $ 3 billion (£ 2.2 billion), as the private members’ club looks to capitalize on a post-pandemic global trade recovery.

The company – which owns 28 Soho Houses around the world and several other businesses including Soho Works, Soho Home, The Ned, and Scorpios Beach Club – has reached out to its more than 100,000 members worldwide with the opportunity to purchase actions.

The company, which intends to float as the Membership Collective Group, was valued at $ 2 billion after a $ 100 million fundraiser last year.

However, the group is hopeful that any recovery in the leisure sector thanks to widespread vaccination programs will see it benefit from a higher valuation when the details of the IPO are announced in the coming months.

“This move will allow us to accelerate our investment in improving the physical and digital elements of your membership,” Nick Jones, who founded Soho House in 1995, told members.

The club, which is backed by US billionaire Ron Burkle, who owns around 60% of the capital, contacted its members on Monday.

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“As a member, you have played a vital role in our journey so far,” the company said in an email. “If the initial public offering continues, we would like to offer you the opportunity to participate in this next chapter. “

Richard Caring, who owns restaurants including The Ivy, has a stake of around 30% while Jones owns around 10%.

The group, which aims to use the funds raised through the listing to grow its footprint at 46 Soho House locations around the world by 2023, will offer a fixed amount of shares that each member can purchase, which will be revealed at the approach of the IPO.

Although her finances were hit by the pandemic in 2020, she managed to retain 92% of Soho House’s membership. Annual fees exceed £ 1,000 per year and there was a waiting list of 48,000 applicants at the start of the year.

But revenue nearly halved last year, from $ 642 million to $ 384 million, and the company recorded a loss of $ 235 million.

In the first quarter of the new fiscal year, losses fell from $ 45 million to $ 93 million, with coronavirus restrictions preventing it from opening its sites in the UK. Revenue was $ 72 million, up from $ 142 million in the same period last year.


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