The British-based company that operates one of the world’s biggest networks of private members’ clubs has filed confidentially with the U.S. Securities and Exchange Commision ahead of an expected initial public offering on the New York Stock Exchange that some analysts say could reach a valuation of as much as $4 billion. Even with the pandemic forcing Soho House to close some of its clubs, only 10% of its 110,000 members have cancelled their memberships, and new venues, including Miami, continue to be opened.
Soho House, the British-based company that operates one of the world’s biggest networks of private members’ clubs, has taken a big step towards a U.S. stock-exchange listing after kicking off a formal registration process in the U.S., reported Sky News, a UK publication
C+RB initially reported on the company’s plans in late February (https://clubandresortbusiness.com/soho-house-could-hit-new-york-stock-exchange-with-a-3b-valuation/) and Sky News has now reported that Soho House has submitted a confidential filing with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO) in New York that will value the company at more than $3 billion.
Banking sources said on April 8th that the flotation, which will crystalize a big paper windfall for Soho House’s founder, Nick Jones, could reach a valuation of as much as $4 billion, Sky News reported.
The filing with the SEC is the first formal step towards Soho House making a long-awaited public markets debut on the New York Stock Exchange (NYSE), Sky News reported.
Soho House considered an IPO in 2019, but opted to raise capital privately instead, Sky News reported. It raised another chunk of private funding in the summer of 2020, but has decided that the capital required for future growth is better-accessed via public markets.
A spokesman for Soho House declined to comment about the reported filing with the SEC, Sky News reported.
Despite how the pandemic has forced many of Soho House’s clubs around the world to close, the business has proved to be resilient, with barely 10% of its 110,000 members cancelling their subscription, Sky News reported.
The company has also continued to open venues at breakneck speed, Sky News reported, with outposts now from Miami to Mumbai, as well as a collection of clubs in Britain, its home market. It has also launched a chain of Soho Works workspaces which are broadly comparable to the likes of WeWork.
Soho House members pay well over £1,000-a-year (nearly $1,400 U.S.) in fees to gain access to its venues, as well as discounted hotel rooms and consumer products sold under the Cowshed brand, Sky News reported.
Soho House’s plan to go public on the NYSE represents a blow to hopes in the UK of attracting its stock sale to the London financial market, Sky News noted, but the decision to use the NYSE reflects the fact that the company is now majority-owned by American businessman Ron Burkle, who amassed his fortune through California-based supermarket chains.
JP Morgan and Morgan Stanley will lead the Soho House IPO, Sky News reported.
Originally conceived by Nick Jones as a networking venue for executives in the advertising, media and creative industries, a Soho House membership has become a status symbol for international executives working in sectors including music, fashion and broadcasting, Sky News reported.
Jones, who is married to broadcaster Kirsty Young, opened the first Soho House site on Greek Street in Central London in 1995.
The company prides itself on offering members a discreet and relaxed environment in buildings often housing a hotel, restaurants, gym and other facilities, Sky News reported. Its clubs have become a home-from-home for A-list celebrities, with the likes of Kate Moss and Eddie Redmayne among those photographed emerging from Soho House parties.
Soho House’s breakneck expansion has been facilitated by a series of deals, including the sale by Jones of a controlling stake in the company to Richard Caring, a textiles tycoon, in 2008, Sky News reported. That transaction valued the company at about £130m ($178.6 million U.S.), with a subsequent takeover by Burkle four years later raising Soho House’s value to £250m ($343.5 million U.S.).
Both Jones and Caring have remained as shareholders since then, with Jones continuing to run the business as its chief executive, Sky News reported.
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