Office space manager WeWork to go public sooner than expected

By Akshay Kedari  | Date: 2019-07-25

Office space manager WeWork to go public sooner than expected

The company is looking to arrange an analyst day for Wall Street banks on 31st July to prepare for its IPO.

WeWork, a U.S. based company that offers shared workspaces for tech firms, has recently revealed plans to go public by September. Sources close to the matter claim that the company is likely to make its first IPO (initial public offering) paperwork open in August. However, WeWork has declined to remark on the move.

As per reports, WeWork is expected to raise between $5 billion to $6 billion with the help of bond offerings before the IPO. The debt offering could also give solace to those investing in the IPO, who may be worried that the money used by WeWork is so massive that the firm would need to collect more cash after the initial offering, which would indirectly weaken their shareholdings.

Speaking on this, Adam Troso, Head of Real Estate Corporate Advisory, Greenhill & Co., said that it’s a well-known psychology used by guarantors and IPO investors, and is something people attempt to be prepared for.

Recently, WeWork was valued at $47 billion in a private fundraising round, making it one of the most valued privately-owned businesses on the planet. Nonetheless, the cash losing organization has faced allegations concerning the sustainability of its plan of action, which depends on short term revenue agreement and long-term credit liabilities.

The loss margin at WeWork's parent organization also declined marginally in the Q1 of 2019 to $264 million as incomes continue to double each year, cite reports.

According to reliable sources, the demand for IPO has been strong this year in the U.S. However, there have been some high-profile stumbles lately. For instance, ride-sharing company Lyft Inc. recently surprised investors when its shares fell roughly 20% in its first few weeks of trading. Meanwhile, Uber is reporting trading below its IPO prices.

Source Credit: https://economictimes.indiatimes.com/markets/ipos/fpos/wework-looking-to-go-public-as-early-as-september/articleshow/70355953.cms

https://www.wsj.com/articles/wework-aims-to-go-public-in-september-sooner-than-expected-sources-11563921401

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

By Akshay Kedari

After Ukraine’s invasion, multinational fast-food giant McDonald's Corp. is reportedly planning to sell all its restaurants in Russia, pulling operations from the nation after 30 years. The world's biggest fast-food chain closed 847 ...

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

By Akshay Kedari

GetHenry, a Berlin-based company that offers couriers and logistics organizations electric last-mile delivery bikes, has reportedly raised USD 17.4 million seed round to grow its operations across Europe. The latest investment round was led by LocalG...

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

By Akshay Kedari

Italian luxury sports car manufacturer Ferrari S.p.A. will equip its much-awaited Purosangue SUV with a 12-cylinder engine, as it focused more on fuel-efficient models. Confirming the news, Ferrari Chief Executive Benedetto Vigna claimed that the com...

White House to spend USD 3 billion on EV battery manufacturing in U.S.

White House to spend USD 3 billion on EV battery manufacturing in U.S.

By Akshay Kedari

According to reliable sources, the Biden administration is planning to provide USD 3 billion in finance to reinforce EV battery manufacturing capabilities in the United States. The apparent funds will be issued by the Department of Energy from Presid...

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

By Akshay Kedari

Telefonica S.A. is planning to increase its investments in Israel’s high-tech sector this year, a senior official reported recently. The company, which is Europe’s third-largest telecommunications company, is also eyeing the country&rsquo...