In a meeting with the analysts that took place this week, an executive of WeWork which is a co-working company said that the SoftBank Group Corp and the affiliates of the organizations own close to 29% of WeWork just before the Initial Public Offer.
The significant amount of the stake has not been disclosed publicly which means that the performance of WeWork will be affecting the fortunes of the Japanese conglomerate in a significant way.
WeWork had held a private meeting on Wednesday to provide a brief to the analysts on its business in New York, which is where it has its base. A WeWork executive had also said in the meeting that the co-founder and CEO of the company Adam Neumann will eventually own close to 29% too. Currently, his share is about 22% which is expected to rise to 29% over a period of time after his stocks vests.
The public stock offer has been drawing a great amount of scrutiny from investors who have expressed concerns about the spending of WeWork as well as its corporate governance. While the prospectus of the Initial Public Offering includes some of the information about the stakes of the various shareholders, the percentages were not specified. The document did say however that the CEO will not be selling the stocks for a minimum of a year after the IPO takes place.
The shares of the Japanese company fell by 2.7% in Tokyo on Friday.
The IPO has not turned out to be the kind of celebration that WeWork had once foreseen. The startup according to people who have knowledge of the market is seeking a valuation of close to $20 billion to $30 billion.
Arnold Miller is pro at explaining and presenting the business-related complex concept in a simple way. He has the ultimate skill of effectively writing down the news related to business mergers, political & financial affairs, acquisitions, and the latest business trends being followed by the globally established organizations. He also takes part in various surveys and key interviews with professionals, industry experts, and various organizations. He is also known for his immense knowledge of economics. Arnold had gained around 5 years of experience as a Business Analyst in a well-reputed production firm before choosing the field of Content Writing.