WeWork Down Nearly $2 Billion Ahead of IPO Filing

Innovative workspace leasing company WeWork has finally released its initial public offering, preparing to be the latest in a long string of highly-valued technology companies to go public.  

WeWork, of course, rents out workspaces to companies of all sizes—from brand new startups to major enterprises like Microsoft. Earlier this year, though, the company re-branded as the We Company as a way to highlight how they have broadened their business holdings which now include the WeGrow elementary school and the Flatiron School coding academy.

In its Securities and Exchange Commission (SEC) filing, the New York-based company said it will list under the market ticker symbol “WE.”  Also, in its filing, WeWork named several banks as underwriters for the IPO, including Bank of America, Barclays, Citigroup, Goldman Sachs, HSBC, UBS, Credit Suisse, JPMOrgan, and Wells Fargo.  Furthermore, the company has also revealed a plan to issue three classes of stock.  Quite the unusual move, WeWork will issue Class A common stock for public sale—at one vote per share—and Class B and C common stock that carry 20 votes per share. 

You may recall, earlier this year, that WeWork originally announced amendments to a confidential SEC filing with the IPO.  However, they did not disclose any other terms to the public at that time. Updating that announcement, WeWork appears to expect the IPO to launch in September. 

In a company filing, WeWork said, “We have grown significantly since our inception. Our membership base has grown by over 100 percent 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.” 

The company also admits that losses are historically common for them, especially in regards to continued growth at an accelerated rate.  Should this continue, however, profitability may not be attainable in the foreseeable future, at least not at the company level.  

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