SoftBank, WeWork’s largest shareholder, is urging the office-space-subleasing firm to pause its embattled IPO course of after a cold reception from would-be traders, the Financial Times’ Eric Platt and James Fontanella-Khan reported.
The information comes simply days after The Wall Street Journal reported WeWork — which technically rebranded itself as The We Firm earlier this yr — was considering slashing its projected public-market valuation to less than half, forward of what can be one of many higher-profile public choices this yr.
A WeWork spokesperson instructed Enterprise Insider: “The corporate is in a quiet interval and can politely decline to remark.”
WeWork could cut the valuation for its IPO to under $20 billion and will even postpone the providing, The Wall Road Journal reported on Sunday, citing unnamed sources. The corporate had been valued at $47 billion in its final fundraising spherical.
The corporate is planning to launch an investor roadshow this week to drum up curiosity within the providing, The Journal reported. WeWork’s underwriters are additionally planning to fulfill with traders to debate doable adjustments to make sure a profitable IPO, The Journal mentioned.
SoftBank and its Saudi-backed Imaginative and prescient Fund have invested greater than $10 billion in WeWork.
In accordance with the report, SoftBank is anxious that if WeWork goes public at a valuation a lot decrease than its private-market valuation, it’d harm the agency’s potential to boost its second Vision Fund, therefore its option to strain the corporate into dropping its IPO plans.