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WeWork files for IPO but plans to raise more cash first

The shared office group wants to raise US$3bn-US$4bn before it floats on the stock market
WeWork has received US$8bn of investment but is yet to turn a profit

US shared office giant WeWork Companies Inc wants to drum up at least US$3bn in 2019 ahead of an initial public offer in coming years, it was reported overnight.

The group, which was recently valued at around US$47bn, plans to raise up to US$4bn from a bond sale to fund its hoped-for route to profitability, according to various reports in the US.

WeWork has also filed paperwork with authorities for an IPO.

Shaking up the concept of sharing office spaces, WeWork has become one of the largest office occupiers from New York to London but has yet to turn a profit.

Last year its losses more than doubled to $1.9bn even though revenue more than doubled to $1.8bn, while its most recent numbers saw first-quarter losses reduced slightly year-on-year to $264mln.

Yet, seen as a major ‘disruptor’ of the property industry, WeWork has attracted US$8.4bn of funding since it was founded in 2010.

A new US$3bn-US$4bn debt funding this year could swell to US$10bn in coming years, but will be separate from funds raised in a potential IPO, a source told Reuters.

Earlier this year the group rebranded as the We Company to encompass its WeLive shared living concepts and WeGrow, its nursery and school scheme.

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