Soho House files for IPO to grow business both physically and digitally
In an email to members, founder Nick Jones said the move would enable the global group, which was founded in Soho, to “accelerate our investment in improving both the physical and digital elements of your membership”.
Though no valuation was given in the filings, according to reports, the private members group could be valued by as much as $3bn.
Its largest shareholders include The Ivy and Bill’s backer Richard Caring (30% stake), American retail billionaire Ron Burkle (61%), with Nick Jones holding 9% of company shares.
The three are not expected to sell any shares in the listing, with only a primary offering of new shares.
The funds raised are expected to be used to reduce the group’s debt and accelerate expansion.
It is targeting five to seven new Soho House clubs a year and an average of one Scorpios and The Ned a year.
Writing in the IPO prospectus, Jones said that since founding Soho House in 1995 he has made sure that its members are at the heart of everything it does and that much of its success has been down to its “ability to respond and adapt to shifting lifestyle trends as well as to the needs of our progressive and forward-thinking membership base”.
He said the move would enable the company to launch new types of membership that can be scaled globally and which were not tied to physical space.
“After 25 years, we now find ourselves in the position of being a global platform for our memberships. I’m incredibly proud of how we’ve grown memberships for social, work, and retail under Soho House, and have evolved our platforms to create new opportunities for our existing members, as well as potential new members. Now, as MCG, we can leverage the expertise and infrastructure we have built, add new membership concepts such as The Ned and Scorpios, and enable our members to connect and flourish all over the world.
"We will continue to open physical Houses – expanding our footprint across Europe, the Americas, Asia and Africa – and launch new types of membership that can be scaled globally. As well as guiding our decision-making on future House locations, the appetite for Cities Without Houses membership has also given us proof of concept for a digital membership, not tied to a physical space.”
“Offering a new digital-only option will make our membership truly global and diverse, enabling the best creatives from all over the world to make meaningful connections with each other.”
In the first quarter of this year, Soho House’s revenues totalled $72m, compared with $142m in the first three months of last year, while its net losses doubled to $93m.
J.P.Morgan, Morgan Stanley, Goldman Sachs, Bank of America and HSBC are joint book runners for the offering. Citibank and William Blair will serve as a co-managers.
MCG began operating as Soho House in 1995 and now has members across physical and digital spaces, including multiple Soho House and The Ned in London. As of 4 April, the group had over 119,000 members.
Soho House's next UK opening will be a members club in Brighton. Soho House Brighton will be located on the city's Madeira Drive overlooking the beach.