On Tuesday, the 17th of September 2019, owner of shared online workspace provider, WeWork, The We Company founded and headquartered in NY, had suspended its planned initial public offering after witnessing lacklustre response from the investors in context of a global economic cooldown.
In point of fact, people directly briefed over the subject-matter had been quoted saying on Tuesday (September 17th) that at a last-minute decision the US-based online office sharing start-up had cancelled its initial Public offering slated to be taken place as early as this month.
Nonetheless, the company remained under tremendous pressure to proceed with its public listing in order to raise funds for its operations, as the company had yet to post a profit, but investors showed little response and sheer disbelief over the recent weeks at its planned path to profitability.
If truth is to be told, as the company had been seeking for a kick-off of its public trading, the NY-based company was facing a number of concerns including its corporate governance standards alongside sustainability of its proposed business model, which largely relied on a twisting melange of long-term liabilities and short-term revenues, while the online office-space provider had failed to clarify how a feeble framework such as WeWork’s could weather impacts of an economic downturn.
Meanwhile, adding that the company had decided to delay its IPO until year-end, WeWork said in a short statement on Tuesday (September 17th), “The We Company is looking forward to our upcoming IPO, which we expect to be completed by the end of the year. We want to thank all of our employees, members and partners for their ongoing commitment”.