WeWork parent considers delaying stock market debut

Following pushback from investors, office space-sharing company reportedly could postpone its initial public offering.

    WeWork has been plagued by concerns about corporate governance and long-term financial profitability [Brendan McDermid/Reuters]
    WeWork has been plagued by concerns about corporate governance and long-term financial profitability [Brendan McDermid/Reuters]

    WeWork owner The We Company is considering delaying its initial public offering until October at the earliest, concerned that its stock market debut would be snubbed by many investors, people familiar with the matter said on Monday.

    The office-sharing startup based in the United States was making preparations to launch an investor roadshow for its IPO as early as this week.

    It is under pressure to proceed with the stock market flotation to secure funding for its operations.

    The potential delay comes after the Reuters News Agency reported last week that The We Company might seek a valuation in its IPO of between $10bn and $12bn, a dramatic discount to the $47bn valuation it essentially achieved in January.

    In the run-up to its IPO, the We Company has faced concerns over its corporate governance standards, as well as the sustainability of its business model.

    The firm relies on a mix of long-term liabilities and short-term revenue, a model that could face difficulties weathering an economic downturn.

    The company is expected to decide on Monday evening whether it will proceed with the IPO this week, the sources said, requesting anonymity because the matter is confidential.

    The Wall Street Journal first reported on the potential IPO delay.

    The We Company did not immediately respond to request for comment from Reuters.

    SOURCE: Reuters news agency