IPO Update - WeWork

WeWork Announces Planned Offering Will Be Rejected "By End of Year" • Estimations spoke of October, but Adam Neumann, which is the Owner - will direct the company to carry out the "pink show" that was scheduled to begin this week - probably by November • All details on the change In the big IPO scheme

Shared space giant WeWork has announced it is rejecting the IPO at this time and will probably be completed by the end of the year, Bloomberg reports.

WeWork, whose valuation has plummeted in recent weeks, said it will complete its first public offering (IPO) by the end of the year, which is a clear signal that the offering that was due this month will be postponed.

Recall that the difficulties encountered by WeWork and its founder Adam Neumann in their efforts to advance the IPO have led to a change in several issues, reducing Neumann's voting rights and the addition of external directors. However, these changes probably did not convince investors enough. The latter voiced concern over Neumann's widespread control of the company and the hundreds of millions of dollars it had made from selling its shares and other deals with the company. In addition, investors also pointed to the large losses the company has accumulated and continues to accrue. "We are looking forward to the first public offering and we expect it to be completed by the end of the year," the company said in New York last night. "We want to thank the employees, customers and partners for their commitment to the company."

Sources familiar with the issue said that the Japanese softbank, which is deeply invested in WeWork, exerted pressure on the company to postpone the offering, due to doubts raised from the field regarding the company's business model. WeWork was scheduled to start the 'Pink Show' (investor presentation) this week, but the deep cut in its valuations halted progress.

At the beginning of the year, Softbank made its last investment in WeWork at a company value of $ 47 billion. Recent estimates suggest that WeWork will be issued at a mere $ 15 billion valuation and according to other sources even less.Undoubtedly, the decision to postpone the offering hinders the company's progress and expansion and rejects an important source of capital raising for the company that continues to lose money each month. The decision could even threaten a $ 6 billion bond issue - an offering whose success depended on a successful IPO (initial public offering) of WeWork stock.

We should note that American economics websites have noted that Neumann is a believing Jew and therefore the rejection of the issue will continue at least until after the holidays ending in mid-October. Although it is estimated that as we wrote, the rejection will take longer and at least until the end of the year