Soho House plans New York IPO

LONDON, June 21 (Reuters) – The Soho House private members’ club is planning an IPO in New York under the name Membership Collective Group Inc, though it has never been profitable.

“Soho House has begun the process for an IPO on the New York Stock Exchange, with plans to list a company that will be known as Membership Collective Group Inc., or MCG for short,” said founder. Nick Jones in an email. to members seen by Reuters.

“This move will allow us to accelerate our investments in enhancing both the physical and digital elements of your membership,” he said.

The filing with the U.S. Securities and Exchange Commission used a $100 million placeholder for the offering. It gave no other indication of the size of the offering or how much it would be valued.

In 2019, Soho House raised $100 million in exchange for a 5% stake — suggesting a $2 billion valuation.

JPMorgan, Morgan Stanley, Goldman Sachs, Bank of America and HSBC are joint bookrunners for the offering. Citibank and William Blair will act as co-managers.

MCG started out in 1995 as Soho House and now has members in physical and digital spaces including Soho Houses, The Ned in London and Scorpios Beach Club in Mykonos. As of April 4, the group had more than 119,000 members.

Among the risk factors in its S-1 registration statement filed with the SEC, the group cited COVID-19, Brexit, increases in food prices and the fact that it had incurred net losses every year since its inception.

“Since our inception, we have incurred net losses every year, and we may not be able to become profitable,” it said.

Reporting by Guy Faulconbridge; Editing by Kate Holton

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