Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

WeWork listing

WeWork is set to go public in 2021 after its 2019 IPO plans were put on hold. Now, the company is going public through the special purpose acquisition company (SPAC), BowX Acquisition Corp. Learn more in this guide.

Call 0800 195 3100 or email newaccountenquiries.uk@ig.com to talk about opening a trading account. We’re available from 8am to 6pm (UK time), Monday to Friday.

Contact us: 0800 195 3100

WeWork listing

WeWork is set to go public in 2021 after its 2019 IPO plans were put on hold. Now, the company is going public through the special purpose acquisition company (SPAC), BowX Acquisition Corp. Learn more in this guide.

Call 0800 195 3100 or email newaccountenquiries.uk@ig.com to talk about opening a trading account. We’re available from 8am to 6pm (UK time), Monday to Friday.

Contact us: 0800 195 3100

Why trade WeWork’s listing with us?

With us, you can trade or invest in the WeWork SPAC, BowX Acquisition Corporation, before it acquires WeWork and takes the company public. Once the merger is complete, you’ll be able to take a position on the WeWork share price with derivatives like spread bets or CFDs, and you can also invest in WeWork directly by share dealing.1

Trade or invest in the WeWork SPAC before the merger

Open a position on BowX Acquisition Corporation, the SPAC that WeWork is merging with

Trade WeWork shares after
the merger

Go long or short on the WeWork share price with spread bets or CFDs

Invest in WeWork shares after the merger

Become a WeWork shareholder (from zero commission) with a share dealing account or tax-efficient ISA2

How to buy and trade WeWork shares

  • Before the listing
  • After the listing

Take a position on BowX Acquisition Corporation before the company acquires WeWork.

Once BowX Acquisition Corporation has completed the takeover, your existing BowX Acquisition Corporation shares will automatically be converted into WeWork shares.

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Take a position on the WeWork share price from the day of the merger. You can:

  • Speculate on rising and falling share prices with spread bets or CFDs
  • Buy and own physical company shares with share dealing

Trading WeWork shares with us means that you’ll be speculating on the stock’s future price movements using spread bets or CFDs. These derivatives enable you to speculate on rising and falling prices without owning the underlying asset, while receiving various tax benefits.2

With spread bets or CFDs, you’ll be trading with leverage, which lets you receive full market exposure for an initial deposit. Trading with leverage can magnify your profits, but it can also magnify your losses – so it’s important to take steps to manage your risk.

Learn more about the impact of leverage on your trading

When investing in WeWork shares, you’ll need to pay the full cost of your position upfront because leverage isn’t available for investments. While this can increase your initial outlay compared to trading, it also caps your risk at the amount of money you paid to buy the shares.

If you sell your shares at a higher price than what you paid to buy them, you’ll profit. But, if you sell them at a lower price that what you paid for them, you’ll incur a loss. Remember that investments can fall in value as well as rise, and you may receive back less than you initially invested.

Learn more about risk management

WeWork listing: what you need to know

The WeWork listing is set to happen through a SPAC merger. A special purpose acquisition company has no commercial operations and is designed with the specific purpose of raising funds through an IPO by merging with or acquiring an existing business. WeWork is merging with BowX Acquisition Corporation.

This is WeWork’s second attempt at going public. The company’s IPO plans in 2019 didn’t pan out due to a lack of investor interest, which was fuelled, in parts, by concerns over financial losses and corporate governance. WeWork is now looking to list in Q3 of 2021 through its merger agreement. However, the deal is subject to BowX shareholder approval and other conditions. WeWork has been valued at $9 billion ahead of its listing.

WeWork SPAC deal vs IPO: what’s the difference?

A SPAC deal is also sometimes known as a reverse takeover or merger. Before acquiring a private company, SPACs raise money from the public market. Below are some of the key differences between a SPAC deal and an IPO.

Special purpose acquisition company (SPAC) deal Initial public offering (IPO)
  • The SPAC goes public first before the merger happens. The private company then becomes publicly-listed by merging with the SPAC
  • The private company goes public independently via the traditional IPO process
  • SPACs enable a company to go public quicker as most of the groundwork – like fulfilling regulatory requirements or raising funds – has already been laid
  • IPOs can be time-consuming and costly. The private company raises money, organises the IPO and pays for it
  • The deal is signed with the SPAC sponsor at a fixed price that has been negotiated before the announcement of going public
  • The announcement is made first – negotiations on the size and target share price of the listing happen after
  • The deal is made with one party only
  • Capital is raised through deals with several parties

Learn more about what IPOs are and how they work

Our analysis on the WeWork IPO

By Sam Dickens, portfolio manager
16 April 2021

After its failed initial public offering (IPO) in 2019, WeWork will now be going public via a Special Purpose Acquisition Company (SPAC). The deal values the firm at around $9 billion, a fraction of the $47 billion valuation that was achieved two years ago.

The company’s business model is simple – WeWork rents buildings and subleases the space to tenants at a higher rate. WeWork’s downfall in 2019 was as a result of its attempt to masquerade as a technology company whilst providing little indication on how it would achieve profitability at a later stage.

WeWork’s new CEO Sandeep Mathrani, a real estate veteran who has spent time as CEO at other real estate groups such as Brookfield Properties and General Growth Properties, appears to have doubled-down on the company view that WeWork is a tech firm, calling it a “worldwide technology platform”.

But he has gained credibility amongst investors by placing a greater focus on costs whilst divesting a number of previous acquisitions made under Neumann’s tenancy.

Cutting capital expenditure and improving margins will be essential if the company is to be self-sustaining in the future and not reliant on raising external funding to stay afloat.

WeWork’s SPAC is thought to unlock around $1.3 billion in cash, which will assist with operating expenses, given that the company is still heavily loss-making. WeWork posted a $3.2 billion loss in 2020, a slight improvement from the $3.5 billion loss it made in 2019.

But Mathrani is forecasting strong demand for shared office space in a post-Covid world, fuelled by his expectation that many companies will still require some flexible working space despite choosing to get rid of their offices and allowing employees to work from home part-time. Whether this trend materialises or not is the multi-billion-dollar question for WeWork.

The SPAC prospectus forecasts WeWork to achieve positive “adjusted” earnings before interest, tax, depreciation and amortization (EBITDA) by 2022. This adjusted EBITDA measure strips out costs such as those associated with acquisitions and divestments. The cost of divesting previous failed acquisitions is likely to drag on GAAP earnings for years to come, then.

While the loss-making nature of the business makes it difficult to value WeWork from an earnings perspective, sales could be used to gauge whether a $9 billion valuation is sensible.

A $9 billion valuation appears far more achievable than the $47 billion price tag that was floated in 2019, but still represents a premium over its key competitor IWG who owns brands such as Regus and Spaces.

This is largely down to WeWork’s expectations that it will grow revenue at a faster rate. Sales are projected to climb by an annualised rate of a 21.4% for the next four years.

WeWork IWG
Forecast 2021 revenue ($m) 3,246 3,342
Market cap ($bn) -9.0e 5.1
Forward price / Sales ratio 2.77x 1.52x

Source: Bloomberg

A major risk for WeWork is a turn in the property market. WeWork takes out long-term leases on its properties and generally has shorter-term contracts with its tenants. If property prices and market rents were to fall, its tenants could demand lower rents, thus creating a further mismatch between revenue and costs.

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Fast execution on a huge range of markets

Enjoy flexible access to more than 17,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

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How do IPOs work?

IPOs work by having a company listing its shares on the open market, where market participants can buy and sell the shares. The company will decide how many shares it wants to offer, and an underwriter – usually a bank – will decide on the initial price of the stocks based on supply and demand.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

Choose the UK’s No.1 spread betting and CFD provider3

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

FAQs

You can stay up-to-date with the WeWork IPO by signing up to our IPO mailing list.

Adam Neumann and Miguel McKelvey set up WeWork in 2010. The business is headquartered in New York, and currently has workspaces in more than 118 cities across the world.

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1 US stocks may take a few hours to be available to buy and sell on the day of a public listing.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
3 Based on revenue excluding FX (published financial statements, June 2020).