Why trade WeWork's IPO with IG?
Speculate on WeWork
Take a position with our 'grey market' via CFD
Go short as well as long
Buy or sell based on your prediction of WeWork’s market cap
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When could the WeWork IPO happen?
There is no confirmed date for the WeWork IPO. The company filed to go public in August 2019, but it is unclear exactly when the IPO will happen.
How to trade the WeWork IPO
If you want to trade the WeWork IPO, you can do so before and after the listing. Here’s how:
Before the listing
IG will be offering a 'grey market' via CFDs before the IPO is held, enabling you to speculate on WeWork's market cap before it lists.
The price of our grey market is a prediction of what WeWork's total market capitalisation will be at the end of its first day of trading
- If you think it will be worth more than the price indicated, you can 'buy' the market
- If you think that the price is an overvaluation, you can 'sell'
What is WeWork likely to be valued at when it lists?
WeWork is likely to be valued at over $47 billion when it lists, as this was the last valuation the company received (in January 2019). The previous valuation was $20 billion (in July 2017), but increased significantly after a major investment from Softbank.
Why is WeWork listing?
WeWork is said to be listing to secure a financing package. In other words, it wants to raise capital and pay off its billions in debts. That’s because although WeWork’s revenue has increased over the past few years, so have its liabilities.
What is the outlook for WeWork?
Despite losing a lot of money, WeWork is still growing, so the outlook remains positive. The expected IPO might attract more high-profile investors, which will be good news for the business. Future plans include expansion to countries such as China.
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What is WeWork’s business model?
WeWork’s business model is renting out shared workspaces to entrepreneurs, freelancers, small businesses and more. It rents spaces from property owners and then sublets them at a higher price. The price per space depends on the location. Further to the rental income, WeWork also makes money by providing additional services for a fee.
How has WeWork been performing?
While WeWork has been performing quite well in terms of revenue production, debts have also increased over the past few years. In 2017, revenue surpassed $900 million, and this figure doubled to $1.8 billion in 2018. Debt increased from $933 million to $1.9 billion in the same period. WeWork’s employee head count has also reflected this rapid growth, increasing from 2200 in May 2017 to more than 11,000 in August 2019. Membership has also expanded as well – going from 130,000 members in May 2017 to more than half a million in August 2019.
Get the latest WeWork news
Who are WeWork’s competitors?
WeWork has quite a few competitors, such as International Workplace Group (IWG), Servcorp and Knotel. Shared workspaces aren’t a new notion, as some of WeWork’s competitors have been around since 1978. IWG listed on the London Stock Exchange in 2000, and it is a constituent of the FTSE 250. Though it is larger than WeWork in terms of reach and locations, WeWork is expected to have a much higher market cap than its rival when it lists. Servcorp is listed on the Australian Stock Exchange (1999), while Knotel (founded in 2016) is not a listed company.
What sets WeWork apart from its competitors is its vibrant workspaces – it appeals to a different market, also offering lower prices per head in some cases.
WeWork key personnel
There are 13 key executives on WeWork’s management team.
|Adam Neumann||Co-founder and chief executive officer|
|Miguel McKelvey||Co-founder and chief culture officer|
|Laurent Paris||Chief technology officer|
|Joanna Lee||VP marketing|
|Ed Granaghan||Chief administrative officer|
|Prabhdeep Singh||Global head of operations|
|John Reid-Dodick||Senior VP Culture|
|Anthony Yazbeck||Chief operating officer|
|Sebastian Gunningham||Vice chairman|
|Ramin Bozorgzadeh||Engineering director|
|Roee Adler||Executive VP product management|
|Eugen Miropolski||Chief product officer|
|Jen Berrent||Chief legal officer|
What was WeWork last valued at?
WeWork was last valued at $47 billion (in January 2019), after a major investment from SoftBank. The previous valuation (in July 2017) was $20 billion.
How do IPOs work?
IPOs are released when a company decides to start selling its shares to the public. The company will decide how many shares it wants to offer, and the investment bank will decide on the initial price of the stocks based on supply and demand.
1Based on revenue excluding FX (published financial statements, June 2020).