WeWork, a company that collapsed in 2024, was a pioneer in this field. Its founder, Adam Neumann, was an Israeli Navy veteran who went to college in America around 2002. Like others who did not finish their degrees, Neumann had immense drive.
He stumbled onto WeWork’s idea by subletting empty desks in his Brooklyn warehouse on Craigslist. This was an arbitrage trade. His attempt to lease long and sublet short was successful.
His success prompted him to start WeWork. Neumann’s masterstroke was to project the flexible workspace field as a tech business. The young man was charismatic and persuasive. His height and military bearing gave him a sense of authority. He sought advice from Masayoshi Son in a 12-minute meeting that unlocked US$4.4 billion.
Neumann was not short of ambition. He turned office subletting into a messianic cult. The WeWork users would be part of a community. He declared WeWork would “elevate the world’s consciousness”.
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It listed in 2019 at a valuation of US$47 billion, which was 26 times its revenue. The valuation was 10 times the peer group multiple.
Neumann paid himself US$5.9 million to license the word “We” back to his own firm. He flew on private jets stocked with tequila. His US$21 million mansion had a wave pool.
The flaws were apparent in the IPO prospectus. WeWork had burned through US$3.3 billion in cumulative losses from 2016 to 2018. The losses exceeded its total revenue over the same period.
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The problem was that it borrowed long-term leases and sublet short-term. This left it vulnerable to a market downturn. The valuation cratered 90% after Covid. It eventually collapsed in 2024.
JustCo, the company in the IPO spotlight this week, is valued more modestly. The business model is the disciplined, profitable cousin of WeWork’s cautionary tale.
It was founded in 2011 by brothers Kong Wan Sing and Kong Wan Long, with a single 3,132 sq ft office at Samsung Hub, close to Raffles Place.
JustCo has grown to 54 centres across 12 cities. It provides 37,500 workstations across 1.89 million sq ft of net lettable area.
The core model is simple. It leases commercial space from landlords on long-term agreements. The company then fits it out as a premium flexible workspace. It then sublets to members, including corporate, SME and freelance clients. The leases are on short-term, flexible terms.
The margin lives in the spread between fixed lease costs and variable membership revenue. JustCo distinguishes itself from WeWork in operational rigour. Its cash ebitda margin expanded to 9.4% in 2025 from just 3% in 2023. The company has no outstanding external bank debt and $104 million in cash.
JustCo is also shifting towards asset-light management contracts. It is operating centres on behalf of landlords rather than leasing them directly. The number of management contract centres grew from 16 in 2023 to 22 in 2025, with 28 targeted by the end of 2026. This reduces balance sheet risk and improves capital efficiency.
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On valuation, the IPO priced at $0.94 per share, implying a market capitalisation of approximately $460 million. Against FY2025 revenue of $144.2 million, that implies an EV/Sales multiple of roughly three times. This is a world away from WeWork’s delusional 26 times.
There are listed peers. IWG is the largest among them. It is listed in London with 4,500 locations worldwide. JustCo is priced at a premium of 40% to IWG. JustCo may be about to expand in Asia, the fastest-growing region for this sector. IWG has underserved the region.
The backer roster lends credibility. GIC holds 29.1% and Frasers Property 22.5%. There are cornerstone investors, including JPMorgan Asset Management, Fullerton Fund Management, and Avanda Investment Management. Total pre-IPO funding raised stands at $273 million.
JustCo may get the ammunition for growth. A Singaporean company may lay WeWork’s ghost to rest. If so, the tequila shots will be well deserved.
Nirgunan Tiruchelvam is head of consumer and internet at Aletheia Capital and author of Investing in the Covid Era. The views expressed here are not investment advice.
