The planned IPO is only an Offer for Sale (OFS) of up to 4.63 crore equity shares, according to the draft documents.
Those with knowledge of the situation estimate the issue size to be close to Rs 3,000 crore, and co-working giant WeWork India is preparing to conduct its initial public offering (IPO) on October 3.
The red herring prospectus (RHP) states that the offer will end on October 7 and that anchor investor bidding will start for one day on October 1.
The planned IPO is only an Offer for Sale (OFS) of up to 4.63 crore equity shares, according to the draft documents. Investor 1 Ariel Way Tenant Ltd (a division of WeWork Global) and promoter group company Embassy Buildcon LLP will sell their shares.
The listing will not generate any revenue for WeWork India as the issue is an OFS.
At the moment, WeWork Global owns 23.45% of WeWork India, while Embassy Group owns around 76.21%.
WeWork India was founded in 2017 and is run under an exclusive license of the “WeWork” name in India. It is supported by the Embassy Group, a significant real estate company located in Bengaluru.
The goal of the offer, according to WeWork India’s draft documents, is to reap the rewards of listing its equity shares on stock markets. The business anticipates that the listing would increase visibility, provide current shareholders liquidity, and create a public market for its shares in India.
WeWork Global collected Rs 500 crore in a rights issue in January 2024, mainly to fund expansion and decrease debt, after investing $100 million in 2021.
Major tier 1 cities such as Bengaluru, Mumbai, Pune, Hyderabad, Gurugram, Noida, Delhi, and Chennai are home to WeWork India’s activities.
It now has a 1.03 lakh desk capacity and 77 lakh square feet of area, of which 70 lakh square feet are in use. Over 500 individuals work for the firm.
WeWork India is anticipated to make its stock market debut on October 10th, with the initial public offering (IPO) taking place in early October.