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We officially lifts the lid on finances with IPO
Posted on Wednesday, 14 August 2019 13:29
We, the holding company of US shared office space startup WeWork, has officially revealed an initial public offering (IPO) with a USD 1.00 billion placeholder.

The flexible working area provider has hired nine underwriters, including JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Barclays, to handle the listing of class A shares.

We opened its doors to its first member community at 154 Grand Street in New York City in early 2010 and, at first, renters consisted mostly of freelancers, start-ups and small businesses.

After initially establishing bases in New York, then San Francisco, Los Angeles, Boston and Seattle, in 2014, the company decided to expand internationally, starting in London, followed by Tel Aviv.

Over the last nine years, it has scaled rapidly to provide integrated space, services and technology in over 528 locations in 111 cities across 29 countries.

We’s customer base has grown by over 100.0 per cent every year since 2014 and its 527,000 memberships represent global enterprises across multiple industries, including 38.0 per cent of the Global Fortune 500.

The group noted it has taken more than seven years to achieve USD 1.00 billion of run-rate revenue, but only one additional year to reach USD 2.00 billion of run-rate revenue and just six months to reach USD 3.00 billion.

We said the main purpose of the IPO is to increase its capitalisation and financial flexibility, as well as creating a public market for its stock.

That is not to say it will not raise funds; proceeds will be used for general corporate purposes, including working capital, and operating expenses.

In August, We entered into a commitment letter for a new senior secured credit facility providing for up to USD 6.00 billion, which is expected to complete concurrently with the closing of the offering.

The IPO filing has lifted the lid on the group’s finances; in the six months to 30th June 2019, it booked revenue of USD 1.54 billion, up from USD 763.77 million in H1 2018.

However, net losses totalled USD 907.65 million for the period, wider than the USD 722.89 million loss racked up in H1 2018.

As at 30th June 2019, We had cash and equivalents of USD 2.47 billion.

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