Share with We work The company soared Thursday as it made its long-awaited public market debut on the New York Stock Exchange. Throughout the town, co-founder Adam Neumann worked with early employees to celebrate the $ 1 billion plunge from the listing.
Shares of the shared office space group have risen by more than 10% in early transactions due to the accumulation of investors, and companies that are consistently losing money Pandemic By moving to a more flexible work pattern. Approximately two hours after the market opened, the stock was trading at $ 11.45, up 10.3%.
The listing was delineated under a long, checkered journey to list WeWork shares. This gave early employees and private market investors the first opportunity to sell their shares in the company, which opened its first office in 2010.
It will also enrich Neumann, who resigned as CEO under pressure in 2019 following the collapse of the company’s first attempt to be publicized at a valuation of $ 47 billion.
Neumann currently holds about 11% of the stake, worth more than $ 1 billion, but hasn’t been able to sell the stake for nine months and is “not a seller,” someone familiar with the matter said. Told.
WeWork’s market capitalization exceeded $ 9 billion due to its price, as shares began trading on Thursday after the merger with a listed special-purpose company.
Hosted by Neumann and co-founder Miguel McKelvey party With dozens of early WeWork employees to celebrate the listing at the Standard Hotel in Manhattan’s Meatpacking District. Neumann, wearing a T-shirt with the “Student for Life” slogan, told attendees that he had learned “hard lessons” but was “excited about the future.”
The guests of the event replayed the early features of the company’s party, one chanting “us” and Neuman and his ex-colleagues yelling “work!”.
The party was a show of support from Neumann, followed by a fierce legal battle with Japanese investment group SoftBank, the largest investor who injected more than $ 10 billion into the company, following WeWork’s departure. Neumann settled with Softbank earlier this year and signed an agreement to give him cash, stock incentives, and commissions worth about $ 450 million.
The transaction also included a provision for “profit and profit” to Neumann worth approximately $ 250 million if WeWork shares were traded in excess of $ 10 per share. Neumann previously sold $ 578 million in WeWork shares to SoftBank.
WeWork posted a loss of more than $ 6 billion in the 18 months to the middle of this year. When the pandemic broke out, the company’s offices remained empty, hitting a painful restructuring of the business after the initial public offering attempt was stopped in 2019.
WeWork is dangerously close Lack of cash After failing to list, Softbank needs relief.
The company is reducing costs under its new CEO, Sandeep Mathrani, and is aiming for profitability next year by reducing leasing and administration costs, reducing annual costs by approximately $ 2 billion.
“I’ll make a profit next year. I can’t help but make a profit,” he said.
As WeWork wasn’t profitable, some analysts wondered why more offices and desks were rated about twice as much as rival coworking firm IWG, which was consistently profitable before the pandemic. I came to see it.
Elsewhere in the world, WeWork office residents were invited to “Ring the Bell Together!”. Celebrating the listing of the company. However, the atmosphere of the office in Kings Cross, London was less ecstatic than that of the New York Stock Exchange and the Standard Hotel.
WeWork’s Wall Street debut values Neumann’s stake at $1bn Source link WeWork’s Wall Street debut values Neumann’s stake at $1bn
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