WeWork Companies, the parent company of shared office space manager WeWork, is pushing to raise a hefty amount of cash before its long awaited initial public offering, according to a report by Reuters.
The company is trying to raise $3 to $4 billion in debt before it’s IPO, according to Reuters’ unnamed source, who adds this move is to boost investor confidence in the company.
WeWork is trying to avoid the negative press that followed other heavily hyped IPO’s this year that did not go as well as planned, specifically ride-hailing startups Uber Technologies and Lyft Inc. Both companies were cited by investors for steep losses and no clear projections on when they would reach profitability.
WeWork has yet to be profitable, so raising debt offerings could help reassure investors of its profitability potential ahead of the IPO. The report says WeWork could get as much as $10 billion over the next few years, separate from what it raises from the IPO. The company has already had debt offering conversations with investment banks Goldman Sachs and JP Morgan Chase.