The We Company said on Monday that it will complete the initial public offering for WeWork by this year. This comes after the company pulled back from an investor road show for its upcoming IPO earlier this month.
Sources who have information about the matter informed reporters that the company did not go through with its road show because of fears that lesser than expected investors would turn up on the IPO. The owner of the office-sharing start-up called it off on Monday in a last-minute decision.
The company is striving to make its stock market debut in order to finance its operations.
While the company is looking forward to its IPO, there are widespread concerns over the sustainability of its business. WeWork is functioning on long term liabilities and is turning only short term revenues which could be disastrous for the company in situations like the current economic downturn.
Reporters informed that The We Company may aim for a valuation of $10 billion to $12 billion in its IPO. This is a significant drop from the valuation of $47 billion it received back during the starting of this year.
WeWork said that the company will be completing its IPO proceedings by the end of this year. Moreover, it also showed gratitude for the commitment of its employees, partner and members in a statement.
The We Company on Friday announced changes in its corporate governance. However, the delay in its IPO has resulted in a belief that it is not positive about its changes and that it is not sufficient to attract investors. Many investors have shown concerns regarding the profitability of the company in the future.