WeWork may soldier on with its IPO despite reports that it’s slashing its valuation by more than half

We Company CEO Adam Neumann. Jackal Pan / Getty

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.

Read more:
WeWork isn’t even close to being profitable – it loses $US219,000 every hour of every day

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.