WeWork Moves Forward With Highly Anticipated IPO
The firm, which was valued at $47 billion earlier this year, is reportedly in the process of meeting with Wall Street banks to secure an asset-backed loan of about $6 billion according to the Wall Street Journal. After revealing it had losses of about $1.9 billion in 2018, the company needed to seek capital elsewhere in order to convince Wall Street that it has the ability to continue its expansion.
Despite its major losses, the company is growing steadily with a 90% occupancy rate in 2018 and a 116% membership growth.
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The We Company filed paperwork with the U.S. Securities and Exchange Commission for an IPO in December 2018, which is expected to be the second largest offering this year just following transportation company Uber.
Co-founder and CEO Adam Neumann has also reportedly cashed out of over $700 million through a combination of stock sales and loans from the company — an unusual move as founders typically wait until after a company’s public offering to liquidate their holdings.
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