Daily Management Review

WeWork shares up more than 10 per cent in first day of trading


Co-working service WeWork has gone public and its shares on the New York Stock Exchange reached $13.71 on the first day of trading, 37% above the offering price.

Marco Verch
Marco Verch
WeWork went public through a merger with specialist target mergers and acquisitions (SPAC) company BowX Acquisition Corp, valuing the service at about $8bn, with the co-working service receiving $1.3bn in cash as part of the deal.

WeWork was trying to go public back in 2019. At the time, the company was considered one of the world's most expensive startups with an estimated value of nearly $50 billion. However, the company then ran into problems, investor interest in it plummeted, its management was heavily criticised, and its value dropped several times over. As a result, the IPO was cancelled and WeWork's largest shareholder, Japanese conglomerate SoftBank, took full control of the service.

Meanwhile, the company continues to make serious losses. At the end of the second quarter, they reached $888.8 million. And as noted in the company's filing with the Securities and Exchange Commission (SEC), the company's office space occupancy rate had fallen to 55% by June 1.

source: bloomberg.com