Wework eyes second run at stock exchange listing

Uncertainty about demand for office space in a global pandemic is a big risk that investors will have to weigh as Wework makes a second run at a public stock offering.

A year after the coronavirus turned office towers into ghost towns worldwide, the embattled communal workspace company said Friday it would merge with special purposes acquisition company Bowx Acquisition and seek a public listing.

But the offering comes as many companies are switching to hybrid work schedules, allowing employees to stay at home part of the time. That means firms already locked into leases will have too much space and aren’t likely to need Wework’s short-term conference rooms or offices.

“You’re going to find they can accommodate most pop-up meetings inside their office, so they don’t have to go to Wework,” said Patrick Dore, a former Notre Dame real estate law professor who has handled office space deals in Manhattan.

The announcement Friday comes almost two years after Wework’s first attempt at an IPO blew up in spectacular fashion, with CEO and founder Adam Neumann being ousted.

The agreement values Wework at $9 billion plus debt, far below the

$47 billion in September 2019 when the IPO fell apart after massive losses were revealed in regulatory filings.

The deal with Bowx provides a lifeline to Wework. Armed with cash raised from investors, SPACS look for private companies to buy so they can easily list stock on an exchange. Wework said it would also raise $1.3 billion.