WeWork intends to hire JPMorgan Chase Goldman Sachs as a listed underwriter as early as September


[abstract] The target of WeWork’s listing financing is US$3.5 billion, which will become the second largest listed transaction in US capital market since this year.
Tencent Technologies Inc. WeWork, a U.S. shared office space service provider, is preparing to go public. According to the latest news from foreign media, two investment banks, JPMorgan Chase Bank and Goldman Sachs Group, are expected to lead the company’s initial public offering next month. WeWork is also preparing to raise the underwriting rate for investment banks.
According to foreign media reports, people familiar with the matter said that the office sharing company was expected to award J.P. Morgan Chase the coveted “lead underwriter” position in the syndicated bank that handled the transaction.
Since the negotiations were conducted in private, these people demanded anonymity.
According to people familiar with the matter, the terms and levels of investment bank underwriting services involved in WeWork’s listing have not been formally determined and may change.
According to reports, WeWork’s listing financing target is $3.5 billion, which will become the second largest listed transaction in the US capital market since this year. Recently, the level of underwriting fees for listings discussed by WeWork has risen. One reason is that a successful listing will help WeWork complete its $6 billion loan financing plan.
Earlier last week, WeWork reportedly planned to pay investment banks 2.5% to 3% of its total public financing as underwriting fees. But in recent days, the underwriting rate has been raised to 3.5%. Sources said that the underwriting fee rate is also changing.
Representatives of WeWork, JPMorgan Chase and Goldman Sachs declined to comment on the report.
The New York-based company rents office space to businesses and freelancers, and has been looking for ways to grow, possibly investing in a wide range of businesses and real estate.
People familiar with the company’s loan terms say that WeWork’s bankers’efforts to secure billions of dollars in additional financing may be more profitable than simply dealing with its stock issuance business or listing.
The company is seeking $2 billion in credit lines and $4 billion in deferred fixed-term loans, these people said. Only when the IPO financing is at least $3 billion can the bank fulfill its commitment to approve the loan. Lenders will receive fees equivalent to about 3% of the final commitment.
In May, Uber, the world’s largest online car company, went public for $8.1 billion, becoming the world’s largest IPO in 2019, followed by Avantor, which raised a total of $2.9 billion.
Listing time
Regarding the time of WeWork’s listing, foreign media reported in July that the company planned to go public as early as September, earlier than previously expected.
The company is expected to publish its listing documents in August, sources said.
According to WeWork’s business model, the company will lease some office buildings or property sites, redesign, set up facilities that many companies can share, such as conference rooms, bars, lounges, etc., and then lease these office space to a number of start-ups to make profits through higher rents. (Tencent Technology Revision/Chengxi)