WeWork is pushing back its public debut with investor confidence appearing to grow shaky in the office share company that had recently been valued at around $47 billion.
WeWork's parent company put its stock market debut on the backburner Tuesday, struggling to drum up investor enthusiasm for a fast-growing enterprise that spread trendy communal office spaces across the globe while piling up massive losses.
Already, the We Company had announced sweeping corporate governance changes intended to address conflict of interest and commitment concerns surrounding CEO Adam Neumann. And it had been considering pricing its shares in the IPO at a valuation of less than half the estimated $47 billion that private investors have assigned to it.
However, Smith said investors in public markets have gotten more cautious about big companies that are growing quickly but also bleeding losses. The ride-hailing companies Uber and Lyft came to the market earlier this year with large losses, for example, and both are still trading well below their IPO prices.
WeWork makes money by leasing buildings and dividing them into office spaces to sublet to members, who use an app to book ready-made offices or desks and get access to front-desk service, trendy lounges, conference rooms, free coffee and other services. With location operating expenses — mostly rent — amounting to some 80% of revenue, WeWork has been heavily reliant on cash infusions from its private investors, particularly the Japanese conglomerate SoftBank, which valued the company at a $47 billion in a January round of funding.
Also looming over WeWork are concerns about Neumann, who created a stir by using some of his WeWork stock to secure a $500 million personal loan, and selling some of his shares. He has raised conflict of interest concerns because he owns four buildings that WeWork leases. And a backlash prompted Neumann to return $6 million that We Company paid for the trademark"We."
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork parent considers delaying IPO following pushback: sourcesWeWork owner The We Company is considering delaying its initial public offering ...
Read more »
WeWork reportedly is leaning toward delaying its IPOWeWork is expected to delay its planned public offering until at least October. Previously, it was expected to complete it by the end of this month.
Read more »
WeWork parent pulls IPO following pushback: sourcesWeWork owner The We Company took a last-minute decision on Monday to suspend pre...
Read more »
WeWork will reportedly shelve its IPO in a 'last-minute decision' after weak investor interestThe embattled workspace group made the call on Monday to delay its listing, Reuters said. WeWork told Markets Insider it expects to IPO by year-end.
Read more »
WeWork parent says IPO still on despite setbacksAs WeWork's troubled market debut is delayed, The We Company told investors they can expect a big debut on Wall Street by the end of the year
Read more »