Soho House Valued at $2.8 Billion After Members-Only Club’s IPO

Bookmark

Membership Collective Group Inc., the company behind the trendy Soho House members clubs, raised $420 million in an initial public offering priced at the bottom of a marketed range.

The firm, which owns 28 Soho House clubs around the world, sold 30 million shares Wednesday for $14 each, according to a statement. Membership Collective had marketed the shares for $14 to $16.

The listing gives Membership Collective a market value of $2.8 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

Founded in 1995 in London’s Soho district as a venue for executives in the creative industries, the group now has about 119,000 members, according to its filings. New ventures including the Ned, the vast hotel and restaurant complex in the heart of the City of London, have broadened its appeal to other groups including finance workers.

The company’s portfolio also includes nine workspaces in London, Los Angeles and New York and home-decor retailer Soho Home.

Soho House Valued at $2.8 Billion After Members-Only Club’s IPO

Coronavirus pandemic lockdowns hit the company hard, with revenue slumping to $384 million in the fiscal year ended Jan. 3 from $642 million a year earlier, its filings show.

Still, total membership revenue grew during the period as sign-ups across other brands helped offset a small decline in Soho House customers. The company, which hasn’t turned a profit, lost $93 million in the 13 weeks ended April 4, compared with $45 million for the equivalent period a year ago.

As of early April, the company had $826 million in debt, which it plans to pay down using the IPO proceeds.

Membership Collective is majority owned by Ron Burkle’s Yucaipa Cos., which will continue to control the company. Founder and Chief Executive Officer Nick Jones owns a minority stake, as does board member Richard Caring, who first invested in 2008.

Soho House Valued at $2.8 Billion After Members-Only Club’s IPO

The company set aside a portion of its IPO shares for its employees and members in the U.K. and the U.S. in a program it’s calling the “Community Offer.”

The offering is being led by JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp. The shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol MCG.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.