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These tech companies mad about the stock market

2019-08-31T08:13:27.978Z

WeCompany, the parent company of the WeWork shared office leader, hopes to raise up to $ 6 billion.


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Adam Neumann (center), co-founder of WeWork, at the Nasdaq Opening Ceremony, January 16, 2018. Mark Lennihan / AP

This should be the next major IPO in the United States. After filling out the company's economic situation documents in mid-August, WeWork, the parent company of WeWork, a global giant of shared offices, could take its first steps into the market as early as September. Its goal: raise between 3 and 6 billion dollars (2.7 and 5.4 billion euros). We should know more after an investor meeting scheduled for August 31st.

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Since its announcement, the operation has given rise to some mixed reactions. Admittedly, WeWork can claim to have "disrupted" his sector. In one year, the company, present in 111 cities and 29 countries around the world, has more than doubled the number of its users (527 000) and its turnover (1.54 billion dollars in the first half) and now stands as the leader in its market, neck and neck with IWG. At the same time, the company keeps on increasing its losses. Over the first six months of the year, these amounted to 690 million dollars, a slight increase over last year.

$ 8.1 billion for Uber

In addition, WeWork revealed in its introductory document elements that are likely to worry investors: convoluted financial arrangements, an officer who leases premises himself to his company and is compensated for the sale of the new name of the company. company that he himself deposited. Between worrisome economic indicators and opaque management, WeWork, valued at $ 47 billion, has attracted the taunts of many observers, such as economics professor, Scott Galloway, author of best-selling books, who has affixed the society of nickname "WE WTF" ("What is this delusion?") Adding, scathing: "Any analyst who would support this action beyond a valuation of $ 10 billion would be a liar, an idiot, or both at the same time. "WeWork is the accumulation of all possible extremes," says Réza Malekzadeh, partner at Partech.

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Despite this unfortunate reception, the operation promises to be one of the highlights of the year on the markets. Until then, it was Uber who made the biggest hit by managing to raise $ 8.1 billion during its IPO, making it the 9th largest IPO (Initial Public Offering) in history in the USA. Slack (corporate mail), listed since late June, comes just behind ($ 7.4 billion). More generally, tech stocks have been the main market leaders, with companies like Lyft, Pinterest, Zoom or some more unknown, such as Beyond Meat or CrowdStrike. Peloton, which aims to revolutionize the practice of the exercise bike, has also filed its file to enter the stock market. For its part, Airbnb said it was ready to take the plunge by the end of the year.

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Source: lemonde

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