Co-working chain WeWork will hold the largest IPO since Uber. It is valued at $47 billion

The world's largest network of co-working spaces WeWork unexpectedly filed documents for an IPO. Its placement will be the second largest in 2019 after Uber - in January, WeWork was estimated at $47 billion. The decision on an IPO may be forced for the company. This year, banks stopped lending to it, and the Japanese SoftBank changed its mind about buying a controlling stake in the network. Bankers and investors fear that WeWork's rental-based model may not survive the next crisis.

Second after Uber. WeWork secretly filed its first application in December 2018. An updated document has now been filed with the SEC. The IPO should take place this year, say . Financial Times sources

WeWork was founded in 2010 by Israel-born Adam Neumann ( worth $2.5 billion). Its business is based on a portfolio of rental properties that WeWork retail subleases to small businesses and individuals. The company manages 4.2 million sq. m of office space in the US and other countries. Since 2010, its portfolio has grown by 23% annually, according to a study by the consulting company JLL.
Since its inception, WeWork has raised $12 billion in investments. Its biggest investor is Japanese billionaire Masayoshi Son's Softbank and its Vision Fund, which has raised $100 billion in Gulf investment. SoftBank has invested $4.4 billion in WeWork, and with debt financing (including convertible debt and a final round of $2 billion due to the company in 2019), more than $10 billion.
At the same time, WeWork's business remains unprofitable. In 2018, the company's revenue grew from $886 to $1.8 billion, with a net loss of $1.9 billion.

Why coworking spaces need an IPO. Going public may be a forced move for WeWork, as the company has recently experienced funding disruptions.

In early 2019, Bloomberg wrote that European banks began to refuse loans to WeWork. Bankers are scared by the company's focus on continuous rapid growth and the unreliability of the coworking business model, which could collapse in the event of sharp fluctuations in rental rates. The bankers said they would be more willing to lend to the company if it went public.
In 2019, WeWork was due to receive new, record-breaking funding from SoftBank, which was about to buy a majority stake in the network but changed its mind . The deal was opposed by SoftBank's partners in the Vision Fund, the sovereign wealth funds of Saudi Arabia and Abu Dhabi. Funds questioned Masayoshi's bet on a loss-making WeWork vulnerable to market turmoil. In addition, their portfolios already have enough real estate, and they expect investments in technology assets from a partnership with Son, wrote The Wall Street Journal. As a result, SoftBank limited itself to a “regular” round of $2 billion.