Soho House, one of the world’s largest private club chains, has taken a big step towards listing on the stock exchange after starting the formal US registration process.
Sky News learned that Soho House filed a confidential IPO this week in New York, which is valued at more than $ 3 billion (£ 2.1 billion).
Banking sources said Thursday that the offering, which will give founder Nick Jones huge paper profits, could reach a valuation of $ 4 billion (£ 2.9 billion).
The filing with the US Securities and Exchange Commission (SEC) is the first formal step for Soho House to debut on the New York Stock Exchange (NYSE).
The company considered an IPO two years ago, but instead decided to raise capital privately.
Despite the pandemic that has forced many of its clubs around the world to close, business has proven to be resilient, with only 10% of its 110,000 members canceling their subscriptions.
Soho House’s plan to go public on the NYSE would hit a city that had hopes of bringing it to the London market, but reflects the fact that American businessman Ron Berkle is majority shareholder.
The company has opened establishments at breakneck speed: now outposts from Miami to Mumbai, as well as a number of clubs in the UK, in its home market.
Soho House members pay over £ 1,000 a year for access to its establishments, as well as access to discounted hotel rooms and discounted consumer goods sold under the Cowshed brand.
He also launched a Soho Works chain of workspaces that are broadly comparable to the likes of WeWork.
Originally conceived by founder Mr. Jones as a meeting place for executives in the advertising, media and creative industries, Soho House membership has become a status symbol for international executives working in sectors such as music, fashion and broadcasting.
Mr. Jones, who is married to TV presenter Kirsty Young, opened his first site on Grecheskaya Street in central London in 1995.
The company prides itself on offering its members a discreet and relaxed environment in buildings that are often home to hotels, restaurants, a gym and other facilities.
Its clubs have become a haven for high-profile celebrities such as Kate Moss and Eddie Redmayne among those photographed after partying at Soho House.
Soho House’s frenzied expansion has been fueled by a number of deals, including Mr. Jones’ sale of a controlling stake in the company to textile tycoon Richard Caring in 2008.
The deal valued the company at around £ 130 million, followed by a takeover by Ron Burkle, a California supermarket billionaire who, four years later, attributed Soho House a £ 250 million price tag.
Both Mr. Jones and Mr. Karing have remained shareholders since then, with the former continuing to run the business as its CEO.
Soho House raised another chunk of private funding last summer, but decided that access to the capital needed for future growth would be better through public markets.
JP Morgan and Morgan Stanley lead the Soho House IPO.
A Soho House spokesman declined to comment.