WeWork is looking to go public but the real estate company isn’t planning to do so through a normal initial public offering (IPO). Instead, it’s looking at a merger with special purpose acquisition company (SPAC) BowX Acquisition (NASDAQ:BOWX) to get its stock on the market.
Here’s what investors need to know about the SPAC merger between WeWork and BowX Acquisition.
- The SPAC merger values WeWork at $9 billion.
- It will also set the company up with $1.3 billion of cash.
- That includes $483 million in cash held in trust by BowX Acquisition.
- Another $800 million is coming from a private investment in public equity (PIPE).
- Leading that PIPE is Insight Partners, Starwood Capital Group funds, Fidelity Management & Research Company LLC, Centaurus Capital, and BlackRock (NYSE:BLK) funds.
- This will also provide the combined company with $2.4 billion of liquidity.
- Among this is a a $550 million senior secured notes facility being provided by SoftBank (OTCMKTS:SFTBY).
- WeWork will likely keep BOWX stock on the Nasdaq Exchange when it takes over.
- However, the company doesn’t say what it plans to change the stock ticker to after the merger is complete.
- The deal has the unanimous support from both comapnies’ Boards of Directors.
- Now it just needs to complete other customary closing conditions.
- That includes getting approval from regualtors and holders of BOWX stock.
- So long as there’s no problems during the process, the deal is set to close in the third quarter of 2021.
- BOWX stock is seeing heavy trading on today’s SPAC merger news.
- As of this writing, more than 15 million shares of the stock have changed hands.
- To put that in perspective, the company’s daily average trading volume is only about 403,000 shares.
BOWX stock was up 10.3% as of Friday morning.
WeWork is far from the only company with plans to go public.
There have been quite a few comapnies lately that have joined the public market. Among them are ThredUP (NASDAQ:TDUP), Vizio (NYSE:VZIO), and DigitalOcean Holdings (NYSE:DOCN). Investors can learn more about those IPO efforts with the following content from InvestorPlace.com.
More IPO News
- TDUP Stock IPO: 17 Things for ThredUP IPO Investors to Know As Shares Begin Trading Today
- Vizio Stock IPO: 7 Things to Know as VZIO Stock Starts Trading Today
- DigitalOcean IPO: 10 Things to Know as DOCN Stock Starts Trading
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.