When could the WeWork IPO happen?
There is no confirmed date for the WeWork IPO. The company filed to go public in August 2019 and was expected to list within a few months of this date. However, at the end of September 2019, WeWork announced that it was postponing the IPO to focus on the fundamentals of the business. It is unclear exactly when the IPO will happen.
What is WeWork likely to be valued at when it lists?
It is not known what the WeWork valuation will be when it lists. In January 2019, WeWork received a valuation of $47 billion. This figure was slashed to between $20 billion and $30 billion following a lack of investor interest. The most recent valuation is around $10 billion.
What could the WeWork share price be when it floats?
It is not known what the WeWork share price will be when it floats. When the company decides to go ahead with the listing, an investment bank will use the appropriate valuation techniques to determine the price of the shares. The bank will also decide how many shares will be released to the public. After the IPO, normal supply and demand factors will determine the share price.
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Why is WeWork listing?
WeWork is not listing any time soon. Previous reports stated that the company wanted to list to secure a financing package. In other words, it wanted to raise capital and pay off debts that amount to billions of dollars. That’s because although WeWork’s revenue has increased over the past few years, so have its liabilities. However, it has put the brakes on an immediate listing due to a lack of investor interest.
What is the outlook for WeWork?
Despite losing a lot of money, WeWork is still growing, so the outlook is mixed. An IPO might attract more high-profile investors, which will be good news for the business. Future plans include expansion to countries such as China.
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.
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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.
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.
|Artie Minson||Co-chief executive officer|
|Sebastian Gunningham||Co-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|
|Ramin Bozorgzadeh||Engineering director|
|Roee Adler||Executive VP product management|
|Eugen Miropolski||Chief product officer|
|Jen Berrent||Chief legal officer|
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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).