WeWork gains 13% in long-awaited trading debut 2 years after failed IPO attempt
WeWorkstock began trading Thursday, two years after its IPO plans crashed.
- The flexible-workspace company went public through a SPAC merger with BowX.
WeWork stock climbed in its first day of trading Thursday, two years after its efforts to launch an initial public offering crashed.
The flexible-workspace company went public through a merger with BowX Acquisition, a special purpose acquisition company, with the SPAC combination operating under the WeWork name and trading under the ticker symbol "WE".
WeWork was founded in 2010 in New York and boomed to expand to more than 500 locations in more than 100 cities. Under the We Company name, it filed a hotly anticipated IPO prospectus in August 2019 with expectations to go public at a $47 billion valuation, following investments anchored by Japanese conglomerate SoftBank.
But the IPO filing served as a springboard for numerous stories from many news outlets, including Insider, about WeWork's widening losses and potential conflicts between now-ousted CEO and founder Adam Neumann and the company.
WeWork on September 30, 2019, under new leadership, indefinitely postponed its IPO plan.
"Today is a testament to the determination of our company to not only transform our business, but also to adapt and deliver the options that today's workforce demands," said WeWork CEO Sandeep Mathrani in a statement released Thursday.
Also on Thursday, the company reported preliminary third-quarter revenue of $658 million, up from $593 million in the second quarter. Total occupancy across consolidated operations rose to 60% at the end of the third quarter from 52% at the end of the second quarter.
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