WeWork CEO Adam Neumann and JPMorgan Chase CEO Jamie Dimon with The New York Stock Exchange (Credit: Pixabay and Getty Images)
Ahead of what would be the second largest initial public offering of the year, the We Company is in discussions with banks to secure a $2.75 billion credit line.
While it remains unclear which banks are considering the financing, Bloomberg reported that JPMorgan is leading the talks. JPMorgan is also one of WeWork’s earliest investors.
The We Company and JPMorgan declined to comment.
Last month, the We Company said it had filed preliminary documents to the Securities and Exchange Commission to pave the way for a potential IPO.
The discussions with Wall Street banks signal another step toward an initial offering. Companies often reward banks that give them big credit lines with roles in the IPO, and banks sometimes will return the favor with better terms on the financing.
The IPO would follow those of other mega-unicorn startups, Lyft and Uber, which have both performed poorly since entering the public markets.
The flexible office startup, which was last valued at $47 billion, has so far raised $12.8 billion, backed largely by Japanese conglomerate Softbank Corp. In January, Softbank considered taking a majority stake in the company, but walked back those plans after its investors expressed concerns.
Earlier this month, the company reported that its losses and revenues doubled in the first quarter, to $728 million and $264 million, respectively. These margins stayed in line with its 2018 financial figures. [Bloomberg] — David Jeans