Never profitable, but very much on trend, membership/hotel model Soho House said on Tuesday it plans to raise as much as US$480 million through a New York Stock Exchange initial public offering, targeting a valuation of about US$3.21 billion, according to multiple reports.
Its Membership Collective Group (symbol MCG) plans to sell 30 million shares of Class A common stock priced between US$14 and US$16 a share.
With some 119,000 current members across its global network of Soho Houses, The Ned and the Scorpios Beach Club in Mykonos, Greece, Founder and CEO Nick Jones said in the filing that the company will continue to open Soho Houses across Europe, the Americas, Asia and Africa. It is also planning to launch a variety of new membership options.
The filing said there are some 59,000 membership applicants on a waitlist after achieving 92%-member retention in fiscal 2020 despite COVID-related closures.
With COVID and Brexit headwinds, the venture reported a net loss of US$93 million in 1Q21 on US$72 million of revenue, the filing showed.