The We Company, formally known as WeWork, has confidentially filed for an IPO, the company announced on Monday (April 29).
"(The company) announced that it has confidentially submitted an amended draft registration statement on Form S-1 with the Securities and Exchange Commission (‘SEC’) relating to an initial public offering of its common stock. WeWork initially submitted its Form S-1 with the SEC in December 2018,” the release said. “This process will enable WeWork to make the decision to become publicly traded, subject to market and other conditions.”
The company didn’t release any financial information in the filing, but CNBC is reporting that that WeWork had a net loss of $1.9 billion on $1.8 billion in revenue in 2018, as well as a net loss of $933 million on $886 million in revenue in 2017.
The company relies heavily on outside funding from private investors, mostly SoftBank, which has provided the startup with $10 billion, including $2 billion this year. Most of WeWork’s money goes into real estate in expensive markets, and it makes its money back over time through rent or membership.
Earlier this year, the company rebranded from WeWork to better illustrate its plans. It also owns WeLive, which gives residents flexible housing, as well as WeGrow, an education arm.
Adam Neumann, the company’s cofounder, wrote a memo to employees explaining the move.
“We have regularly focused on how to take our business to the next level in every aspect. As part of keeping all options open, we confidentially filed a draft S-1 registration statement with the Securities and Exchange Commission in December,” he said. “After a lot of thought, last week we decided to file the first amendment to our submission, which is a step toward allowing us to decide to become a public company.”
Neumann said he is only allowed to share so much on the topic due to the nature of the filing, but he did want everyone to know that the process has started.
“Partly due to technology and partly due to the times we live in, the world has never felt smaller, and yet more people than ever are sharing that they feel alone,” he said. “As one of the world’s largest physical networks, it is our responsibility to help lead the way and set the global example for people and corporations on how we should take care of each other and of our planet.”