When Equinox CEO Harvey Spevak appeared on Bloomberg TV Canada on Wednesday, host Pamela Ritchie queried him about the reason for the delay in the initial public offering (IPO) launch of SoulCycle, the indoor cycling studio brand owned by Equinox, New York. SoulCycle filed papers in summer 2015 for an IPO, but so far, the IPO hasn't gone any further.
Spevak's reason for the delay likely wasn't a surprise to anyone.
"We've all seen what's happened with the U.S. stock market," he said. "If you look at the history over the last 12 months, the data says there are only two IPOs that are now trading above their offering price. So, we're kind of in a watch mode right now."
Spevak is limited in what he can say about the IPO since the IPO paperwork filed with the Securities and Exchange Commission puts the company in a quiet period. However, when pressed by Ritchie about whether an IPO might happen by the end of 2016, Spevak said that no one knows where the global economy, the U.S. economy and the capital markets are going, so it's just a matter of watching.
He added that the company is doing well, though.
"Right now, most importantly, we have a very, very, very, very strong brand," he said. "That brand is in [such] great demand that we can't satisfy that demand. We are just continuing to grow the business."
Spevak was in Canada for the opening of the company's second Canadian club. The first one opened three years ago in Toronto, and the second one opened this week in the Toronto suburb of Yorkville.
He shared that the Equinox and SoulCycle demographic is one that is so focused on health and fitness that they continue to be faithful to their workouts even in a recession, a point he also noted in a previous appearance on Bloomberg TV in January. He said that during the recession that began in 2008, the company had a record performance.
"Why? Because our members used our clubs with a greater frequency, they trained more, they took classes more, they wanted that experience, they wanted those results," he said.
So even though it sounds like the SoulCycle IPO is on hold until its executives feel the market is more welcoming of IPOs, Spevak is still "selling" the value of the brand for the day that IPO does actually happen.