After the Uber IPO turned out to be a huge dude, the market seems to be little excited about WeWork’s forthcoming IPO. But Wall Street’s subdued optimism isn’t stopping the world’s largest co-working company from arranging $2.75 billion credit line from well-known banks, according to a report published in Bloomberg.
JPMorgan Chase & Co is negotiating the terms and conditions on behalf of WeWork with various banks, the report further claimed.
WeWork is trying to follow the established norm of raising credit ahead of the IPO. In the past this standard norm has helped companies in bolstering its reserves and improving investor sentiments before launch of its IPO.
WeWork’s recent quarterly results proved to be a mixed bag as it failed to inject any major excitement in the stock market. The company said that it lost close to $264 Mn in first three months of the current year mainly for pursuing international expansion. But the company posted impressive revenue numbers that stood at approximately $728.3 Mn. Nearly 46% of the revenue came from international markets, which partly vindicated company’s strategy to focus aggressively on foreign markets.
WeWork started renting co-working spaces to freelancers and companies way back in 2010. Since then the company has come a long way to emerge as one of the world’s most valued startups. According to reports, company’s current valuation stands at $47 Bn. This is the highest valuation boosted by an office sharing startup and is certainly good enough to push for an IPO.
WeWork and Uber share common investor in the form of SoftBank. SoftBank is the largest investor in both these well-known tech companies. However, WeWork would be hoping that its IPO doesn’t suffer the ignominious fate that Uber’s public issue had to endure few days back. The exact date of WeWork’s public issue is still not known.