Sina Technology News on the morning of August 3, Beijing time, according to a Bloomberg report, people familiar with the matter revealed that WeWork will soon be appointedJ.P. MorganwithGoldman SachsIt will act as the lead underwriter for its IPO next month and will increase the fees paid to banks.

According to people familiar with the matter, J.P. Morgan is expected to get the lead left position from the underwriter. However, the terms and hierarchies involving all investment banks have not yet been formally established, and may change at any time.

The target size of WeWork's IPO is about 3.5 billion US dollars, and it is expected to be the second largest IPO in the year. Since the company plans to finance $6 billion in debt after a successful IPO, its IPO fee pool has been rising in recent days. This unusual deal pairing aims to provide a diverse source of funding for WeWork's global expansion.

Earlier this week, people familiar with the matter revealed that WeWork is preparing to use 2.5% to 3% of the IPO funding amount to pay for underwriting expenses. According to people familiar with the matter, the proportion that is still being negotiated has climbed to 3.5%, but the specific situation is also constantly changing.

Spokesmen for WeWork, J.P. Morgan, and Goldman Sachs all declined to comment.

New York-based WeWork provides office space for businesses and freelancers. They are always looking for ways to grow and may invest in a wide range of businesses and real estate. People familiar with the matter said that for investment banks cooperating with WeWork, promoting additional financing of billions of dollars may be more profitable than simply processing their stock sales.

People familiar with the matter said the company is trying to raise $2 billion through letter of credit loans and $4 billion through delayed withdrawal loans. Banks can deliver on their promises only if they raise at least $3 billion in an initial public offering. Lenders will receive an upfront fee equal to approximately 3% of their final commitment.

Uber's IPO in May was US$8.1 billion, making it the world's largest IPO deal in 2019. Next was Avantor, which went public that month, with a financing amount of US$2.9 billion.