WeWork's parent company has chosen to list its shares on Nasdaq and is planning major changes in governance as the shared workspace provider speeds up preparations for the highly anticipated first offer in the face of lukewarm investor interest.
The moves are part of a plan by We Co., as the company is officially known, to begin marketing the shares officially to investors next week ahead of a trading debut on September 23, people said of the case. .
The company is expected to set a preliminary price range by next week, and we and its advisers are targeting a valuation that could slip below $ 20 billion, as The Wall Street Journal previously reported. That's significantly lower than the $ 47 billion valuation set in a funding round earlier this year, and reflects skepticism about the company's governance and ability to reverse steep losses.
We co-founder and CEO Adam Neumann controls a majority of the company's voting rights through special shares whose strength was recently enhanced.
His wife, Rebekah Neumann ̵
Prospective investors have also questioned Mr. Neumann's sale of hundreds of millions of dollars of We shares and loans of more than $ 740 million tied to his shares in the company, according to reports in the Wall Street Journal and government records.
We officials and their advisers have been in an intensive series of meetings in recent days as questions rework whether the company will review the offer, one of the largest in what could be a record year for new releases. But the choice of a listing site, along with the expected valuation of cuts and management control, shows that it has decided to plow ahead – even if it means increasing less than originally hoped.
An important motivation factor is $ 6 billion in loans. We have agreed that it is conditional on at least $ 3 billion being raised in the share offering.
This year's IPO frenzy has started a heated battle between the NYSE and Nasdaq, which sees major IPOs as franchise-defining opportunities that can help countries succeed, become important marketing tools and represent new sources of trading revenue. The listing of We has been regarded as one of the biggest prizes in the second half of the year after the Nasdaq landed
and the New York Stock Exchange landed
and direct list of
in the first half.
Over the next few weeks, Peloton Interactive Inc. plans to debut on Nasdaq and Endeavor Group Holdings Inc., the parent company of Hollywood's largest talent agency, is scheduled to begin trading on the NYSE.  We waited unusually long to decide on an exchange. Generally, large companies choose one of the times they register publicly for an IPO. There are some companies waiting longer, but the most buzzed about IPOs in recent years have chosen a trading location far ahead of We & # 39; s timing – just days before the start of the investor's roadshow – to a sign of behind-the-scenes strides to hold entry in route.
Despite questions and concerns from investors, Neumann has said privately that he is keen to move forward with the IPO.
In conversations earlier this week with leaders of
, the company's largest shareholder, Mr. Neumann said he does not expect anything fundamental to change over the next year and that he believes the most important thing now is to get a large supply of cash so that he can continue his expansion plans, people with the case said.
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