Sun. Aug 25th, 2019

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WeWork posts $690m loss as it plots share sale

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logon - WeWork posts $690m loss as it plots share sale

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The owner of US firm WeWork, which rents out office space, posted a $690m (£572m) loss for the first half of 2019 as it moves closer to selling shares to the public.

The company also doubled revenue in the period to $1.54bn.

It plans to list its shares next month, although it is not clear where or how many shares will be available.

The move comes as markets endure a volatile period due to the UK’s EU exit and the US trade war with China.

If the sale of shares goes ahead, known as an Initial Public Offering or IPO, it will be the biggest such event this year in the US since taxi firm Uber’s flotation.

The company offers serviced office space, often to small, new business ventures.

Critics say it must fulfil long-term contracts with landlords using short-term contracts with its customers, making it vulnerable to downturns, should its custom dry up.

So far it has not turned a profit, but since starting in 2010 it has had terrific growth, spreading to 528 locations in 111 cities.

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