Market Overview

What We Know About WeWork's IPO Filing

What We Know About WeWork's IPO Filing

The We Company, formally known as WeWork, was founded in 2010 with a core mission of creating a world where "people work to make a life, not just a living." On Wednesday, the company released a regulatory S-1 filing detailing its plans for an upcoming initial public offering.

What We Know

The We Company first offered physical space for mostly freelancers and small businesses to work, but has since evolved in size and scope and now leases temporary office space to all sizes. The company was valued at $47 billion in early 2019 when it's biggest financial backer, Japan's SoftBank, invested a additional $2 billion.

The company plans to list under the ticker "WE."

Financial Details

The We Company's filing shows it generated $1.54 billion in revenue during the first six months of 2019 with a net loss of $689.7 million. Total members were 90% higher from the same period last year at 527,000 but the company recorded a net loss of more than $900 million.

Quartz said investors will be looking at "made-up accounting metrics," including Community Adjusted EBITDA which the company uses to calculate net income prior to interest, taxes, depreciation, amortization in addition to "building-and community-level operating expenses."

Size Of IPO

The size of the offering is likely to come in much higher than the $1 billion "placeholder" amount by as much as three times, CNBC's Leslie Picker reported. The company is reportedly looking to raise another $3 billion to $4 billion through debt offerings prior to its IPO.

Related Links:

WeWork Seeking To Go Public

Opinion | Softbank Will Succeed Even If Its WeWork Investment Doesn't

Photo courtesy of WeWork.


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