We are Chief Executive Officer Adam Neumann is already rich, but soon all early employees and investors of the co-operating giant will soon be.
A company, now known as The We Company, has accelerated its plans for public announcement, according to a new Wall Street Journal report. It is expected that S-1 will be disclosed in the coming month before the start of the September 1 public offer.
WeWork did not want to comment on this story.
The New York-based company, which is worth $ 47 billion at the beginning of this year, has long been saying it plans a lot of IPOs. The WSJ reports that it is now in the process of meeting with Wall Street banks to secure a $ 6 billion secured loan, which could be an effort to reduce its supply. WeWork in March showed a huge net loss of $ 1.9 billion for revenue of $ 1.8 billion. In order to convince Wall Street that the company will be worth their investment, it will be a challenge at least. Finding capital elsewhere before the IPO manages the expectations and ensures that WeWork finally has the money it needs to continue the global expansion. Take a look at expanding WeWork revenue and losses:
- WeWork revenue for 2017: $ 886 million
- Net WeWork loss for 2017: 933 million USD
- WeWorks revenue 2018: USD 1.82 billion (+ 105.4%)
- Net WeWork loss for 2018: USD 1.9 billion (+ 103.6%)
Since the establishment in 2011, WeWork has raised a total of $ 8.4 billion in a combination of debt and equity financing. His first offer has become the second largest offer of the year for Uber alone, which was worth $ 82.4 billion after the May public vote on the New York Stock Exchange.
WeWork is expected to file documentation at the US Securities and Exchange Commission in early December, partly because it was ready for public markets if other channels for money were lost. The company is one of several technological unicorns to attract billions from the SoftBank Vision Fund. Recently, the Japanese telecommunications giant looked at the majority stake in the company, worth $ 16 billion, but at the last moment it reduced its investment to $ 2 billion.
We are working, despite rising losses, growing – quickly. The company set a 90% occupancy in 2018, as the number of members increased by 116% to 401,000.
Still, whether WeWork, supported by SoftBank, The criterion, T. Rowe Price, Fidelity and Goldman Sachs, the valuation of $ 47 billion will be deceptive when it is publicly announced. Early investors will surely see a good return, but investors in the late stage may be nervous about their options.
Neumann reportedly paid over $ 700 million from his company before the start of the first public offer. The size and timing of payments made through a combination of sales of stocks and loans secured by equity in the company is unusual, as the founders usually wait for the company to announce its offer to liquidate its shares.