More than two years after the IPO plans were spectacularly revealed, WeWork began public trading on the New York Stock Exchange on Thursday, with shares rising after the merger with a special purpose vehicle.
Traded under the ticker “WE”, the WeWork share rose 13% on Thursday.
WeWork raised $ 1.3 billion by going public with blank check company BowX Acquisition Corp., led by Sacramento Kings owner and technology entrepreneur Vivek Ranadive, in a deal first announced in March.
The company’s valuation of roughly $ 9 billion is a sharp drop from 2019, when WeWork was valued at $ 47 billion by SoftBank Group during its initial efforts to go public this year.
As part of the transaction, SoftBank, which spent $ 10 billion to acquire an 80 percent stake in WeWork and save it from a liquidity crisis in October 2019, will retain its controlling stake in the company.
The records show WeWork is still losing money: $ 3.5 billion in 2019, $ 3.2 billion in 2020, and $ 2.1 billion in the first quarter of this year alone, including a cashless one Severance payment of around 500 million US dollars per year with former CEO Adam Neumann Financial Times Report.
WeWork has had sales of $ 3.2 billion each for the past two years (excluding its China operations, which it sold a majority stake in last year) and expects to do so, according to an investor presentation that BowX filed with the Securities and Exchange , in 2021 Commission.
However, the real estate and workplace company expects its revenue to grow again, targeting $ 4.6 billion next year and about $ 7 billion by 2024.