SoulCycle LLC, New York City, has hired investment banks in plans for an initial public offering (IPO) that could come as soon as this summer, according to a Reuters report.
SoulCycle is working with Goldman Sachs and Bank of America, according to the report, which cited anonymous sources familiar with the matter. In May, Reuters reported SoulCycle CEOs and founders Elizabeth Cutler and Julie Rice were looking to sell their remaining stake in the company to parent company Equinox Holdings Inc.
SoulCycle has been majority-owned by Equinox since 2011 and accounted for 12 percent of the chain's revenue in 2014, according to Moody's Investors Service Inc. GVS Capital estimated the cycling chain's revenues at $75 million for 2014 with the possibility of $150 million in 2015 and $225 million in 2016.
About 50,000 exercisers work out per week at SoulCycle locations. Soul Cycle has 22 locations in New York (14 in New York City) and 12 locations in California. It has single studios in New Jersey; Washington, DC; Florida; Chicago and Maryland. The company plans to open 50 to 60 more studios worldwide by next year, and earlier this year announced plans for a new location this fall in downtown Boston.
SoulCycle, which was founded in 2006 and charges about $34 for a 45-minute group cycle session, is the latest fitness industry brand with plans to go public.
Planet Fitness, Newington, New Hampshire, filed a registration statement for an initial public offering on Monday.
Mindbody, which offers software to fitness facilities, debuted on the NASDAQ under the symbol 'MB' on June 19. Other publicly traded fitness companies include Town Sports International (NASDAQ:CLUB), Club Corp Holdings (NYSE: MYCC), Fitbit (NYSE:FIT), Life Fitness, which is part of Lake Forest, Illinois-based Brunswick Corp. (NYSE: BC) and Precor, a division of Helsinki, Finland company Amer Sports (HEL:AMEAS). Life Time Fitness, which traded publicly since 2011, ceased trading on the New York Stock Exchange last week returned to operations as a private company.