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Adam Neumann, CEO of WeWork is already rich, but soon all the first employees and investors of the collaborating giant will be too.
The company, now known as The We Company, has accelerated its intention to become public, according to a new report from the Wall Street Journal. WeWork is expected to unveil its S-1 filing next month before its IPO.
WeWork declined to comment on this story.
The New York-based company, valued at $ 47 billion earlier this year, would have long ago planned a mbadive IPO. The WSJ has announced it is meeting with Wall Street banks to secure a loan-backed loan of more than $ 6 billion, which could be an effort to reduce its future share offering. WeWork announced a net loss of $ 1.9 billion in 2018 for 2018 in 2018 on a $ 1.8 billion business figure. Convincing Wall Street that it's worthy of their investment will be a challenge to say the least. The search for capital elsewhere before the IPO allows us to manage expectations and to provide WeWork with the resources to continue its global expansion. Here is an overview of WeWork's revenue and loss growth:
- 2017 WeWork sales: $ 886 million
- WeWork's net loss in 2017: $ 933 million
- WeWorks 2018 revenue: $ 1.82 billion (+ 105.4%)
- WeWork's net loss in 2018: $ 1.9 billion (+ 103.6%)
Since its inception in 2011, WeWork has raised $ 8.4 billion in equity and equity financing. Its IPO is expected to become the second largest offering of the year behind Uber. which was valued at $ 82.4 billion following its IPO on the New York Stock Exchange in May.
WeWork would initially have filed filings with the US Securities and Exchange Commission for an IPO in December, in part so that it was prepared to strike public markets if other sources of liquidity 'escaped. The company is one of many technology unicorns that have attracted billions of dollars from the SoftBank Vision Fund. Recently, the Japanese telecommunications giant has considered a majority stake in the company worth $ 16 billion, but has reduced its investment to $ 2 billion at the last minute.
WeWork, despite growing losses, is growing rapidly. The company has established a 90% occupancy rate in 2018, with the total number of members increasing 116% to 401,000.
It remains to be seen whether WeWork, backed by SoftBank, Reference, T. Rowe Price, Fidelity and Goldman Sachs, will be able to match its valuation of $ 47 billion when it will be made public this fall is debatable. Early investors will be badured of a good return, but investors in the final phase may be worried about their prospects.
Neumann, for its part, would have cashed more than 700 million dollars from his company before the IPO. The size and timing of payments, made through a combination of equity sales and loans secured by its shares in the company, are unusual, as the founders typically expect a company to proceed with its bid for liquidate their badets.
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