Summary: WeWork, backed by Embassy, has filed for an IPO with SEBI, offering 4.4 crore shares through an offer-for-sale (OFS) structure. Embassy Buildcon, the largest shareholder with a 73.8% stake, and WeWork Global affiliate 1 Ariel Way Tenant Ltd., holding 22.7%, will sell the shares. The company itself will not raise funds from this IPO, as the proceeds will go to the selling shareholders. The average acquisition cost of the shares for Embassy and 1 Ariel is Rs 161.83 and Rs 65.88, respectively.
Embassy-backed workspace provider, WeWork, has filed its draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). This IPO will consist entirely of an offer-for-sale (OFS) component, meaning the company itself will not raise any funds through the offering.
The offering will see up to 4.4 crore shares sold by two major shareholders: Embassy Buildcon LLP and WeWork Global affiliate 1 Ariel Way Tenant Ltd. Embassy Buildcon, the primary promoter, holds a substantial 73.8% stake in the company, while 1 Ariel holds 22.7% on a fully diluted basis.
Embassy Buildcon and 1 Ariel will be offloading shares at an average cost of acquisition of Rs 161.83 and Rs 65.88 per share, respectively. Given that this is a pure OFS, the proceeds from the sale will not benefit WeWork directly, as the funds will be directed to the selling shareholders.
WeWork’s decision to go public comes after a period of growth in India’s flexible workspace market, as demand for co-working spaces continues to rise, driven by the evolving needs of businesses and individuals.
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