- WeWork could begin its IPO roadshow as soon as Monday, September 16, based on a report from CNBC.
- Recent reports indicate that The We Company, WeWork’s parent company, has cut its projected valuation from $US47 billion to less than $US20 billion due to a lack of interest from investors.
- Softbank, WeWork’s largest outside shareholder, asked the company to delay its IPO process and could face a multi-billion-dollar write-down if The We Company debuts with a valuation between $US15 and $US20 billion as reported.
- Visit Business Insider’s homepage for more stories.
WeWork will proceed with its IPO plans and could begin courting investors as early as next week, according to a new report from CNBC’s David Faber and Michael Sheetz.
WeWork rebranded itself as The We Company earlier this year to prepare for its IPO and filed its S-1 in August. However, the company has faced increased scrutiny regarding the long-term viability of its real estate investments and co-working space business.
Scepticism from investors has reportedly led WeWork to set its valuation at about $US20 billion for the IPO, less than half of the $US47 billion valuation the company announced earlier this year. WeWork’s S-1 revealed that the company is not profitable- in 2018 The We Company generated $US1.8 billion in revenue but suffered $US1.9 billion in losses.
Softbank, The We Company’s largest outside shareholder, reportedly asked the company to delay its IPO. SoftBank and its Saudi-backed Vision Fund have invested more than $US10 billion in WeWork, and CNBC notes that it could face a multi-billion-dollar write-down if WeWork makes it debut with a valuation between $US15 and $US20 billion.
The We Company did not immediately respond to Business Insider’s request for comment.
WeWork’s roadshow to seek out potential investors could begin as early as Monday, September 10, CNBC reports.