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Soho House confirms New York Stock Exchange float

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Soho House has confirmed plans for a listing on the New York Stock Exchange as the 28-club group plans to cash in on post-pandemic spending.

The UK-based chain of private members’ clubs, which was first founded in 1995, released filings on Monday for a New York float under the name Membership Collective Group, three years after abandoning its first floatation attempt in 2018.

A special ‘community offer’ will be made available to the brand’s 119,000 members, keen to take part in the float, which is set to take place in the coming months.

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

Soho House owns 28 clubs around the world, as well as nine workspaces in London, Los Angeles and New York and home retailer Soho Home.

The brand also runs The Ned in partnership with New York-based Sydell Group.

Rumours of the Wall Street float first started in February, with the listing looking set to value the portfolio at $3bn.

Last year, founder Nick Jones cut his stake in the chain below 10 per cent and sold 1 per cent holding to majority owner Ron Buckle, a LA-based billionaire who holds about 60 per cent of the business.

Restauranteur Richard Caring is Soho House’s second-biggest investor with around 30 per cent.

None of the existing shareholders are expected to sell down their stakes as a result of the listing.

As a public company, Membership Collective Group plans to accelerate its expansion into new markets, with sites marked for Paris, Rome, Texas and Tel Aviv, as well as a ranch in Sonoma, California.

It is targeting 46 Soho House sites by 2023.

JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp. and HSBC Holdings Plc are joint book-running managers for the offering, while Citigroup Inc. and William Blair & Co. are co-managers.

The decision to go public comes despite the pandemic impacting revenues for Soho House over the last year.

Revenue fell to $384m in 2020, from $642m a year earlier, resulting in a net loss of $235m.

Tags : New York Stock ExchangeNick JonesSoho HouseWall Street
Zoe Monk

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