WeWork’s IPO process has hit another bump in the road, as the co-working giant is reportedly set to delay the process.
The We Co., WeWork’s parent company, was preparing to kick off its roadshow this week, a process where executives pitch investors to convince them to buy shares. However, as first reported by The Wall Street Journal, the company is expected to shelve going public for at least a month. Others posited a delay could push the IPO out even more.
WeWork becomes WeWait
Source says the IPO no longer has even a tentative timeline; the deal could be next month or next year. $WE
— Leslie Picker (@LesliePicker) September 17, 2019
The We Co. has mostly stayed quiet amid reports of its IPO struggles. However, the company addressed the situation Monday night, issuing a statement saying it plans to complete its IPO by the end of the year.
“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,” The company said.
Reports of a delay came after WeWork’s top investor SoftBank Vision Fund reportedly pushed the company to shelve its IPO.
Reports indicate that investors have been spooked by WeWork’s complicated corporate structure and a series of payments made to CEO Adam Neumann, who owned several buildings the company leased space from. WeWork’s financials also showed staggering losses.
WeWork sought to allay investor concerns in a filing with the U.S. Securities and Exchange Commission earlier this month, where it outlined changes to its governance structure, reined in Neumann’s influence somewhat and unwound a major payment to the CEO.
Valued as high as $47 billion following a fundraising round earlier this year, WeWork is reportedly seeking an IPO valuation of $15 million to $20 billion.