WeWork is reportedly leaning toward delaying its IPO
Category : entrepreneur
WeWork will likely delay its planned public offering until at least October, The Wall Street Journal reported Monday, citing unnamed sources.
The We Company, which owns WeWork, said in a statement to Reuters that the company looks “forward to our upcoming IPO, which we expect to be completed by the end of the year.”
The company will not begin its planned roadshow this week, according to The Journal. A roadshow is the name for the series of meetings that startups have with potential investors immediately before a public offering.
WeWork made its IPO paperwork public last month and, according to Bloomberg, had been trying to debut on the markets by the end of this month.
But the company saw significant pushback from investors, who were reportedly concerned about its valuation, business model, governance, and potential resilience in a recession. Last week, the company was considering going public with a market capitalization of as little as $10 billion, less than a quarter the $47 billion valuation SoftBank conferred on it as part of an investment in January.
Read more: Why WeWork’s $47 billion private valuation could be a key stumbling block for its IPO — and might even derail it completely
WeWork’s struggles to go public have reverberated back on SoftBank. Two of the biggest backers of the Japanese conglomerate’s $100 billion Vision Fund are considering taking much smaller stakes in its planned follow-on fund, Bloomberg reported.
WeWork representatives did not immediately respond to an email seeking comment. Representatives for SoftBank, which is the biggest investor in the commercial-real-estate company, also did not immediately respond to an email seeking comment.
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