WeWork Files Confidentially for IPO Amid Flurry of Offerings

WeWork, the world’s biggest co-working company, is planning to go public, joining a wave of highly valued technology startups moving to the U.S. markets, according to Bloomberg.

The New York-based company said it filed paperwork confidentially with the U.S. Securities and Exchange Commission to hold an initial public offering. WeWork, which rents office space to companies and freelancers, would likely be the year’s biggest U.S. IPO after Uber, which expects to start trading next week. WeWork, which also goes by the brand We Co., was most recently valued at $47 billion in a January investment from SoftBank Group, its biggest investor.

Similar to the crop of other big-name tech IPOs this year, such as Uber and Lyft, WeWork runs a business with eye-watering losses. That’s due in part to heavy real-world expenses, such as building lease commitments that can last 15 years. The company lost $1.93 billion on $1.82 billion in sales last year.

Since its founding in 2010, WeWork has raised more than $12 billion in funding, most of it from SoftBank. The Japanese conglomerate has reshaped the world of tech startups with its $100 billion fund backed by Saudi Arabia. SoftBank is a major investor in several of the biggest public offerings planned for this year, including Uber and Slack.

Although WeWork’s IPO filing isn’t yet available to the public, the company has made select disclosures about its financial performance for the last year or so. The bond market got a first glance in April 2018, when WeWork was selling $702 million in bonds rated as junk.

Since then, WeWork has briefed reporters periodically on certain financial information. It has shown a pattern of growing revenue and growing losses. The company coined its own earnings metric, called “community-adjusted Ebitda,“ which eliminates all expenses related to its investments for expansion and into new markets. The company indicated the measure was an attempt to convey whether its existing buildings are profitable on their own, though it also invited derision from critics who say the operation is unsustainable.