UPDATE 1-WeWork looking to go public as early as September - source

By Joshua Franklin and Herbert Lash

July 23 (Reuters) - Shared office space manager WeWork islooking to go public as soon as September, earlier thanpreviously expected, a person familiar with the matter toldReuters on Tuesday.

The company is expected to make its initial public offeringpaperwork public in August, the person said.

The developments were first reported earlier by the WallStreet Journal.

WeWork declined to comment.

WeWork will host an analyst day for Wall Street banks onJuly 31 as part of preparations for its IPO, Reuters reportedlast week.

WeWork is also looking to raise $5 billion to $6 billionthrough a bond offering before the IPO, the source added,requesting anonymity because the matter is private. This is morethan it had previously been looking to raise.

The debt offering could provide comfort to those investingin the IPO who might be concerned that the cash burn at WeWorkis so great it will need to raise more money after the initialoffering, which would dilute their shareholdings.

"That's a very known psychology by underwriters and IPOinvestors, and (that fear), that’s something people try to guardagainst," said Adam Troso, head of real estate corporateadvisory at Greenhill & Co in New York.

WeWork was recently valued at $47 billion in a privatefundraising round, making it one of the most valuable privatecompanies in the world.

However, the money-losing company has faced questions aboutthe sustainability of its business model, which is based onshort-term revenue agreements and long-term loan liabilities.

The losses at WeWork's parent company narrowed slightly inthe first quarter of 2019 to $264 million as revenue continuesto double annually.(Reporting by Joshua Franklin in New York; additional reportingby Sathvik N and Kanishka Singh in Bengaluru; editing by SonyaHepinstall)