The firm feared the failure of its stock market debut. Now he hopes to resume his IPO plans before the end of the year.
The WeWork owner, The We Company, decided to file preparations for a public offering of shares, fearing a failure in its stock market debut. The office rental startup was preparing to launch an investor tour this week to publicize its IPO. Now, the US company is confident that it will be able to resume its IPO plans before the end of the year.
The company had already drastically lowered its valuation expectations in its stock market debut. Thus, The We Company considered placing its valuation between US $ 15 billion and US $ 20 billion, which meant cutting the valuation obtained by the company in its last fundraiser last month of more than US $ 20 billion. November.
Questions about his business and the heavy losses made investors distrustful. SoftBank, one of its main shareholders, has been pressing the firm to delay its IPO, scheduled for this month, given the difficulties they anticipated to place their securities in the market.
In total, SoftBank has allocated US $ 10 billion to the New York company through its VisionFund fund. As the Financial Times has published, SoftBank fears that the WeWork valuation cut will reduce the financing options of its new fund, in which it expects to raise US $ 108 billion to continue investing in technology.
The company has opted for caution against red numbers of US $ 690 million in the first six months of the year and which doubled to almost US $ 2 billion in the past year. The We Company, parent company of WeWork, has announced that it has already received a green light from the Nasdaq to start trading under the We symbol.