Exclusive: WeWork to host Wall Street analyst day in IPO push - sources

By Joshua Franklin NEW YORK (Reuters) - The We Company, parent of flexible workspace operator WeWork, plans to host an analyst day for Wall Street banks on July 31, as the company steps up its preparations for an initial public offering (IPO), people familiar with the matter said. WeWork's decision to host the event at this stage is unusual, given that IPO hopefuls have typically hired underwriters by the time they invite analysts from Wall Street banks to educate them about their company's business. While WeWork filed for an IPO with the U.S.

Reuters July 19, 2019 06:06:56 IST
Exclusive: WeWork to host Wall Street analyst day in IPO push - sources

Exclusive WeWork to host Wall Street analyst day in IPO push  sources

By Joshua Franklin

NEW YORK (Reuters) - The We Company, parent of flexible workspace operator WeWork, plans to host an analyst day for Wall Street banks on July 31, as the company steps up its preparations for an initial public offering (IPO), people familiar with the matter said.

WeWork's decision to host the event at this stage is unusual, given that IPO hopefuls have typically hired underwriters by the time they invite analysts from Wall Street banks to educate them about their company's business.

While WeWork filed for an IPO with the U.S. Securities and Exchange Commission in December, it has yet to hire IPO underwriters, the sources said. WeWork wants to be in a position to potentially go public by the end of 2019, the sources added.

The hosting of the event at this early stage indicated that the New York-based start-up wants to leave nothing to chance after other high-profile IPOs struggled or were cancelled this year, amid pushback from investors over the frothy valuations sought.

The sources asked not to be identified because the matter is confidential. A spokesman for WeWork declined to comment.

The IPO market has been challenging for some of this year's biggest listings. Ride-hailing companies Uber Technologies Inc and Lyft Inc faced criticism from investors about their steep losses and the lack of commitment to a timetable to reach profitability.

Last week, Anheuser Busch InBev NV , the world's largest brewer, shelved the initial public offering (IPO) of its Asian business after it could not muster enough investor support for the valuation it sought.

WeWork was recently valued at $47 billion in a private fundraising round, making it one of the most valuable private companies in the world.

However, the money-losing company has faced questions about the sustainability of its business model, which is based on short-term revenue agreements and long-term loan liabilities.

The losses at WeWork's parent company narrowed slightly in the first quarter of 2019 to $264 million as revenue continues to double annually.

WeWork is looking to raise $3 billion to $4 billion in debt before it goes public, and has held discussions with representatives of Goldman Sachs and JPMorgan Chase & Co to discuss the debt offering, Reuters reported earlier this month.

A substantial debt offering could allow it to pitch itself to potential investors in a planned IPO as having sufficient funding to see itself to profitability.

(Reporting by Joshua Franklin in New York; Editing by Cynthia Osterman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

U.S. job openings rise slightly in September
Business

U.S. job openings rise slightly in September

WASHINGTON (Reuters) - U.S. job openings increased moderately in September and layoffs appeared to abate, pointing to a gradual labor market recovery from the COVID-19 pandemic.

Central bankers seek new role in brave new world
Business

Central bankers seek new role in brave new world

By Balazs Koranyi and Francesco Canepa FRANKFURT (Reuters) - Taking a break from fighting the coronavirus crisis, the world's top central bankers will attempt to resolve the existential questions of their profession this week as they tune into the European Central Bank's annual policy symposium. Having struggled to lift anaemic inflation for years, officials including the heads of the ECB, the U.S. Federal Reserve and the Bank of England will attempt to figure out why monetary policy is not working as it used to and what new role they must play in a changed world - be it fighting inequality or climate change.

Asian stocks extend gains as vaccine hopes support global reopening
Business

Asian stocks extend gains as vaccine hopes support global reopening

By Lawrence Delevingne BOSTON (Reuters) - Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region's heavily trade-dependent markets.