WeWork IPO’s at $9B Valuation

WeWork has started trading two years after an aborted IPO with a $9B valuation.

WeWork, which had just finished merging with BowX Acquisition Corp was listed New York Stock Exchange under the ticker symbol “WE.”

“We got here on a different road than we anticipated, but we’re here,” said Marcelo Claure, WeWork’s executive chairman.

WeWork was initially valued at $47 billion by SoftBank Group but got lowered due to investor fears and speculations on the company’s finances after losing $1.9B.

The failed IPO launch lead to mass layoffs and losses for investors especially SoftBank while the COVID-19 pandemic also added to the blow.

WeWork revealed to investors that it had lost $3.2bn in 2020 and was investigated by the Securities and Exchange Commission in 2019 for allegedly failing to disclose losses to stakeholders after the failed IPO launch.

The New York State Attorney General has also investigated WeWork last year after its founder Adam Neumann was said to have engaged in self-dealing to enrich himself by trademarking the word “We,” and planned to ask WeWork $6 million for its transfer.

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