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WeWork India's $338 Million IPO was fully subscribed by institutional investors on the last day.

WeWork India Management’s $338 million IPO, which was launched on Tuesday at the end of the bidding period, was fully subscribed by the last day. Institutional investors were largely responsible for this demand while retail investors remained cautious due to its high valuation after recent co-working listings.

Why it's important

WeWork India’s IPO will be a test for investor interest in the domestic coworking sector, which has seen a flurry of listings due to a growing demand for flexible offices.

WeWork Global will continue to be the exclusive licensee of the company. WeWork Global was once valued at $47 Billion before shelving its 2019 IPO.

CONTEXT

WeWork India wants to be valued at 86.85 billion rupies ($978.5m) at the upper end of its price range of 615-648 rupies per share, according calculations. This figure is far higher than those of its newly listed peers.

IndiQube Spaces debuted in July with a value of 44.13 billion rupies, while Smartworks Coworking Spaces had a value of 42.13 billion rupies.

Debuted

At 52.96 billion Rupees in the following month.

In the face of thin profit margins, high lease costs and low rental rates, valuation is emerging as a key differentiator.

Aishvarya dadeech, chief executive officer of Fident Asset Management, said that WeWork's price is higher than other companies like Awfis and Smartworks. This makes investors wary.

IndiQube Spaces had a modest debut in July while Smartworks experienced gains on the day of listing.

By the Numbers

Exchange data revealed that WeWork India’s IPO was a full offering for sale of 46,3 million shares. Bids totaling 18.97 billion rupees were received as of 5:15 p.m. IST.

Retail investors bid 0.61 times the quota while qualified institutional buyers bid 1.79 times.

After strong institutional demand, the issue that was covered by only 16% in the morning, has been picked up.

On October 10, shares are scheduled to be listed on the BSE/NSE exchanges.

(source: Reuters)