WeWork may seek IPO valuation of between US$15 billion and US$18 billion

SoftBank is said to be pressing for the co-working spaces firm to postpone its debut into the public market.

Office sharing firm WeWork may be seeking a valuation as low as between US$15 billion and US$18 billion in its public listing, which will be almost one-third of the US$47 billion valuation in its last private fundraising round in January.

Sources told Bloomberg that SoftBank is pressing for WeWork to postpone its stock offering but the decision would lie with co-founder and chief executive officer Adam Neumann, who maintains voting control through a three-class share structure.

SoftBank is WeWork’s largest investor, as it holds a 29% stake of the firm’s stock. A low valuation would not only impact the co-working space that is regarded as one of America’s most valuable unicorn startup but also impact SoftBank’s fundraising schemes.

According to the sources, SoftBank, is pressing for the co-working spaces firm to postpone its debut into the public market.

The weak listings from founder Masayoshi Son’s SoftBank supported tech firms – Uber and Slack – have already impacted the returns for the investor’s first Vision Fund.

SoftBank is currently seeking funds from investors for a second Vision Fund, and currently around US$108 billion in pledges have been secured.

WeWork is currently seeking for fresh funds and are looking to raise between US$3 billion and US$4 billion in the initial public offering (IPO), after burning through US$2.36 billion in cash in the first half of the year, according to Reuters.

SoftBank is reluctant to pump in fresh funds for the real estate company, having splashed US$10.65 billion in total on it so far. The most recent injection was made in a funding round in January which gave the firm a US$47 billion valuation.

WeWork is founded in 2010 and is headquartered in New York. It generates income by renting office space. For the six months ended June 30, 2019, the company reported a revenue of US$1.54 billion with a net income loss of more than US$900 million.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.