The We Company is looking to raise billions of dollars in its upcoming IPO. However, many potential investors are worried that there’s too much going on there that isn’t explanatory.
Should you invest in WeWork?Founded in 2010, WeWork is a company in the business of creating fully set up workspaces for several interested entities including startups, freelancers, entrepreneurs and pretty much any others who may not be able to get their own office space and would need to rent.
Why You Shouldn’t Buy WeWork StockThere are several reasons for any investors to consider not partaking in the IPO. One of the company’s weak points, as reported, is that a lot of the top people in the organization are either leaving or planning to leave.
Potential investors are a little too unsure about how exactly the system works, the company’s exact plans for expansion after the IPO and also it’s organizational structure.
Secondly, the WeWork structure is a multi-class share system, which directly makes the company ineligible for listing on the S&P 500.Thirdly, if it happens that Neumann cannot function as CEO anytime before 2029, the company’s filing specifies that Adam’s wife, Rebekah along with only two board members, will single-handedly choose the next-in-line.
It’s a bit biting when you think about the fact that last year, the company had a total revenue of more than $1.5 billion but ran into such huge operating costs and eventually gathered up a loss of almost 1.4 billion.
So far there’s definitely a void for a company like WeWork to fill.