WeWork's parent company unveiled the papers for its initial public offering on Wednesday, depicting a company whose revenue growth is steep but whose losses have grown at almost the same clip.
The filing provides the most detailed economy of We Co., which was recently known as WeWork Cos. From 2016 to 2018, quadrupled revenue to $ 1.82 billion. But the loss also increased to $ 1.61 billion.
In the first six months of 2019, we generated $ 1.54 billion in revenue and posted a net loss of $ 689.7 million.
The submission also outlines the atypical relationship the company has with its co-founder and CEO
including his personal loans and real estate transactions with the firm.
We, which have been valued as high as $ 47 billion in the private markets, plan to list the shares under the symbol WE. It did not reveal the exchange where it expects to lead.
The 9-year-old real estate company primarily rents long-term space, renovates it, then shares the offices and sublets them to other companies in the short term. The sometimes strange company has often said that it should be compared more to technology companies than traditional real estate companies. On the other side of the filing on Wednesday it says: "We dedicate this to the energy of We ̵
Our public filing will allow the company to debut in September, though some people close to the deal say the timing may still slip. Leaders in recent months have been targeting September as they worried that good times in the US stock market might not last, with large indices at or near record highs.
The company, which is currently the country's most valuable startup, had privately filed to go public with the Securities and Exchange Commission in December.
Wednesday's filing states that we operate in 528 locations in 111 cities around the world, with 527,000 memberships working in these offices.
But growth has come at a steep cost. In order to continue the rapid expansion, WeWork has needed to raise ever-increasing amounts.
Wednesday we said a squabble of banks, including
& Co. and
Goldman Sachs Group
had pledged to give the company up to $ 6 billion in debt that would close at the time of the IPO.
This deal is expected to shrink what WeWork needs to obtain in its IPO, but people familiar with the deal said that the banks involved in financing are still pushing WeWork to raise about $ 4 billion in public stock markets to fund growth. The company has considered raising $ 3 billion to $ 4 billion, said people familiar with the deal.
As part of the debt agreement, WeWork will have to keep at least $ 2.5 billion and up to $ 3.5 billion in cash over the next several years.
The company said that CEO Neumann will not sell any of its shares in the offering and has agreed not to sell shares for about a year after the IPO.
We are the latest in a parade of banner companies to be published in the United States this year, including
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& Co. and Zoom Video Communications Inc.
US IPOs have generally performed well after coming on the market this year, but We & # 39; s debut will be the latest test of investor desire for a large, money-losing company trying to scale up. Uber and Lyft, both losing billions, have been high-profile stumbles.
Like many founders who are still at the helm of their companies at the time of listing, Neumann has majority control. In the filing, the company said that the voting rights of two share classes where he is a key holder would be reduced from a ratio of 20 votes to each share held by a common shareholder to 10 to 1 if Neumann does not. Don't give away at least $ 1 billion for charity at the 10th anniversary of the IPO.
The company also said that high-voting stock classes would disappear if Neumann or persons designated as certain "permitted transfers" own less than 5% of the stock.
The filing also outlines a "substantial" bonus that it awarded Neumann this year as an incentive to publicize the company.
Write to Maureen Farrell at email@example.com
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