SoftBank, WeWork's largest outside shareholder, wants the office-space-subleasing company to shelve its embattled IPO process, which has received a
- SoftBank, WeWork‘s largest outside shareholder, wants the office-space-subleasing company to shelve its embattled IPO process, which has received a chilly reception from potential investors, according to the Financial Times.
- It is the latest blow to WeWork, which has also reportedly cut its projected valuation to under $20 billion– less than half the $47 billion valuation it got from its last fundraising round.
- SoftBank is reportedly concerned that if WeWork were to go public at a valuation much lower than that $47 billion figure, it could hurt SoftBank’s ability to raise its second Vision Fund.
- Here’s a roundup of Business Insider’s WeWork coverage.
A WeWork spokesperson told Business Insider: “The company is in a quiet period and will politely decline to comment.”
The company is planning to launch an investor roadshow this week to drum up interest in the offering, The Journal reported. WeWork’s underwriters are also planning to meet with investors to discuss possible changes to ensure a successful IPO, The Journal said.
SoftBank and its Saudi-backed Vision Fund have invested more than $10 billion in WeWork.
According to the report, SoftBank is concerned that if WeWork goes public at a valuation much lower than its private-market valuation, it might hurt the firm’s ability to raise its second Vision Fund, hence its choice to pressure the company into dropping its IPO plans.
This article is from Inc.com