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- WeWork could start its IPO roadshow as early as Monday, Sept. 16, based on a CNBC report.
- Recent reports indicate The We Company, WeWork's parent company, has reduced its projected valuation from $ 47 billion to less than $ 20 billion due to lack of investor interest.
- Softbank, the largest external shareholder of WeWork, has asked the company to delay its IPO process and could face a multi-billion dollar write-down if The We Company started with a valuation between $ 15 and $ 20 billion, as indicated.
- Visit the Business Insider home page for more stories.
WeWork will continue its IPO projects and could start courting investors as early as next week, according to a new report by David Faber and Michael Sheetz of CNBC.
WeWork changed its name to The We Company earlier this year in preparation for its IPO and filed its S-1 in August. However, the company has been faced with a careful review of the long-term viability of its real estate investments and its coworking space activities.
Investor skepticism would have led WeWork to set its valuation at around $ 20 billion for the IPO, less than half of the $ 47 billion valuation announced earlier this year by the company. The WeWork S-1 revealed that the company was not profitable – in 2018, the company We generated a turnover of $ 1.8 billion but suffered losses of 1.9 billion.
Read more: WeWork is not even about to be profitable – it loses $ 219,000 every hour of the day
Softbank, the largest external shareholder of The We Company, reportedly asked the company to delay its IPO. SoftBank and its Vision Fund, supported by Saudi funds, have invested more than $ 10 billion in WeWork, and CNBC notes that it could be subject to a multi-billion dollar write-down if WeWork the first time with a valuation between 15 and 20 billion dollars.
The company did not immediately respond to Business Insider's comment request.
WeWork's roadshow to search for potential investors could begin as early as Monday, Sept. 10, CNBC reports.
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