WeWork reveals IPO filing

WeWork, now known as The We Company, released its IPO
prospectus
Wednesday morning months after
filing confidentially
to go public.

Backed by billions by SoftBank and its mammoth
Vision Fund, the exit is expected as soon as next month.

The New York-based company, valued at $47 billion earlier this
year, has long been rumored to be plotting a massive IPO despite
towering losses. The business recently disclosed steep 2018 net
losses of $1.9 billion on revenue of $1.8 billion. To convince Wall
Street it’s a business worthy of their investment will be a
challenge, to say the least.

In its filing, WeWork disclosed revenue north of $1.5 billion in
the six months ending June 30 on losses of $904.6 million.

WeWork has raised a total of $8.4 billion in a combination of
debt and equity funding since it was founded in 2011. Its IPO is
poised to become the second-largest offering of the year behind
only Uber, which was valued
at $82.4
billion
 following its May IPO on the New York Stock
Exchange.

WeWork plans to sell shares of its stock under the ticker symbol
“We” with the share price yet to be determined.

SoftBank, unsurprisingly, and Benchmark are to be the big
winners of the upcoming exit. The investment funds own roughly 114
million and 33 million pre-IPO shares.  Benchmark, a venture
capital fund, led a $17 million financing in the business in
2012.

Seven years later, WeWork operates 528 co-working spaces in 111
cities across 29 countries, with a total of 527,000 memberships.
50% of members are outside the U.S.

Even with fast growth and a global presence, WeWork is often
referenced as the perfect example of Silicon Valley’s tendency to
inflate valuations. WeWork, a real estate business with
tech-enabled services built on top, burns through cash rapidly and
will has had a tough time plotting out a clear path to
profitability.

“We have grown significantly since our inception,” the
company writes in the S-1.” Our membership base has grown by over
100% every year since 2014. It took us more than seven years to
achieve $1 billion of run-rate revenue, but only one additional
year to reach $2 billion of run-rate revenue and just six months
to reach $3 billion of run-rate revenue.”

As it gears up to transition into the public markets, WeWork,
planning to open co-working spaces in an additional 169 locations,
says it’s targeting 149 million potential members and a potential
addressable market of $945 billion.

WeWork is also backed by T. Rowe Price, Fidelity, Goldman Sachs
and several others.

This story is updating

 

Source: FS – All Tech News 2
WeWork reveals IPO filing