WeWork plans to raise $ 1 billion in IPO

WeWork plans to raise $ 1 billion in IPO

The Spectacular Rise and Fall of WeWork

Description video:
In less than one year, WeWork went from having a $47 billion valuation and being the darling of the venture capital world to needing an $8 billion infusion to avoid running out of money. This is the story of Adam Neumann, Softbank’s risky investment, a failed IPO and how we got here. \n\n——–\nLike this video? Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg?sub_confirmation=1\n\nBloomberg is the First Word in business news, delivering breaking news \u0026 analysis, up-to-the-minute market data, features, profiles and more: http://www.bloomberg.com\nConnect with us on…\nTwitter: https://twitter.com/business\nFacebook: https://www.facebook.com/bloombergbusiness\nInstagram: https://www.instagram.com/bloombergbusiness/

WeWork plans to raise $ 1 billion in IPOWeWork plans to raise $ 1 billion in IPO

WeWork coworking network announces plans to issue three classes of stock and initially raise $ 1 billion.

The company also released a report on financial performance, according to which WeWork lost $ 1.9 billion last year. For comparison, Uber lost 1.8 billion, and Lyft lost $ 911 million.  

WeWork continues to suffer losses this year. In the first half of 2019, the company lost $ 904 million, a 25% increase over the same period last year. However, revenue doubled to approximately $ 1.5 billion..

In addition to raising money from the public market, WeWork also said it plans to raise up to $ 6 billion in leveraged funds. This money could help the coworking provider continue to expand in global markets despite financial losses. It is known that the shares will be named «We». The cost of one share is still unknown.  

WeWork Major Shareholders — parent company WE Holdings, Benchmark, JP Morgan and SoftBank. SoftBank and Benchmark hold 114 million shares and 33 million shares before the IPO. Last year SoftBank valued the company at $ 47 billion.

As of 2019, WeWork has branches in 111 cities. The estimated scale of the market covered is estimated at $ 945 billion. From January to June 2019, 56% of WeWork’s revenue came from the United States.