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    

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

Fibonacci Brands acquires Darwin from Harvest Health & Recreation
Fibonacci Brands acquires Darwin from Harvest Health & Recreation
By Akshay Kedari

Fibonacci Brands has recently announced the acquisition of Darwin from Harvest Health & Recreation (HARV.CN) as its foundation brand. Fibonacci is a leading player in the international cannabis industry. According to James George, founder of Fib...

GVN adds EVIT Center and Chumakov as its new Centers of Excellence
GVN adds EVIT Center and Chumakov as its new Centers of Excellence
By Akshay Kedari

The Global Virus Network (GVN), an international coalition of medical virologists, has recently announced the addition of Australian and Russian researchers. GVN is adding the Center for EVIT (Emerging Viruses, Inflammation & Therapeutics) of th...

Wind Point Partners takes over RTIC to expand business portfolio
Wind Point Partners takes over RTIC to expand business portfolio
By Akshay Kedari

American private equity firm, Wind Point Partners has recently signed an acquisition deal with the one of the biggest direct-to-consumer (D2C) eCommerce providers of drinkware, RTIC. Reportedly, RTIC is Wind Point’s third acquisition of a famil...

Novartis reveals positive data from Phase III ORION trials of inclisiran
Novartis reveals positive data from Phase III ORION trials of inclisiran
By Akshay Kedari

Swiss multinational pharmaceutical firm, Novartis has recently announced results from its Phase III ORION-10 and -11 studies that focus on assessing the individual responses of patients on lowering low-density lipoprotein cholesterol (LDL-C) with inc...

Medtronic to acquire Companion Medical to expand diabetes business
Medtronic to acquire Companion Medical to expand diabetes business
By Akshay Kedari

Medtronic plc, the global leader in medical technologies, has reportedly announced that it is planning to acquire insulin pen manufacturer Companion Medical. The acquisition gives Medtronic access to Companion Medical’s ‘InPen’, wh...