Online shared workspace provider startup WeWork, headquartered in New York City, had been holding forth to go-ahead with its plan to public listing despite tepid interest on to its shares, at least three sources with knowledge regarding the subject-matter had unveiled on Tuesday, the 10th of September 2019.
As the online office-space provider, WeWork had been pressing hard on to its IPO despite lack of market interest on to its shares, WeWork’s largest investors Japan’s SoftBank Group was left with a hard choice, either to take a sharp turnaround or to drain more cashes in the process.
Nonetheless, latest development on WeWork IPO came forth after a couple of days a company spokesman had been quoted saying that WeWork was mulling a much lower valuation in its Initial Public Offering than initially estimated.
However, another spokesman of the We Company, parent organization of WeWork, had been quoted saying on Tuesday (September 10th) that the NY-based shared online office-space provider had been seeking a market valuation between $15 to $18 billion in its initial public offering, down from an initial estimate of $47 billion made during the company’s last private fundraising round in January.
As WeWork had been pushing hard on to an IPO ahead of an election year in the United States, Japan’s SoftBank’s $10.65 billion investment in WeWork made through the investment fund’s Saudi-backed $100 billion Vision Fund, would have to be written down, it the IPO takes place.
Nevertheless, the sources also added on condition of anonymity that no decision had yet been finalized, while its valuation target and timing of its IPO are still subject to changes.