UK Soho House IPO Falls Short On Market Debut

The London-based members-only Soho House fell short of its debut on the New York Stock Exchange (NYSE) under the ticker MCG following an initial public offering (IPO) priced at the lower end of the marketed range, Bloomberg reported on Thursday (July 15).

Membership Collective Group, the company behind the Soho House, raised $420 million and owns 28 Soho House clubs worldwide. The 30 million shares floated were priced at $14 each, which was the bottom of the $14 to $16 range.

The group’s primary franchise, Soho House, has a valuation of $2.5 billion following the listing, per Bloomberg.

Shares fell as much as 9.6 percent in its trading debut after raising $420 million in an initial public offering priced at the bottom of a marketed range.

The $14 per share price dropped to $12.66 in New York by close, giving the company a market value of $2.5 billion, per Bloomberg.

The company was founded in 1995 as a place for executives in the creative space and now has membership rolls estimated at 119,000, per the filing. The company’s portfolio includes nine workspaces in London, Los Angeles and New York.

Revenue dropped to $384 million from $642 million, per the filings with the U.S. Securities and Exchange Commission (SEC), per Bloomberg. The company is not yet profitable and posted losses totaling $93 million in the 13 weeks ended April 4.

Proceeds from the IPO will be used to pay down $826 million in debt. The majority stakeholder in Membership Collective is Ron Burkle’s Yucaipa Cos., which remains in control of the firm. Company Founder and CEO Nick Jones has a minority stake.

Last month, Membership Collective Group filed with the SEC for a listing.