CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

WeWork planning to drop valuation to below US$20 bln: news reports

WeWork is also in talks with its largest investor SoftBank Group to get more financing so that they can delay the listing.

The first eight months of 2019 has seen volatility in markets due to the trade tensions between the United States (US) and China, which also led to slower global economic growth. The impact of an uncertain economic outlook has plagued the valuations of tech companies who have reached maturity looking to debut: office sharing firm WeWork is now considering a valuation for its initial public offering (IPO) to be below US$20 billion, which is two-third less than the robust US$65 billion projection bankers had months ago.

WeWork’s investors are pushing for the firm to postpone the IPO while the firm’s parent company We Co is planning to hold meetings this week to make changes to the listing in order to make it palatable enough to investors for a share sale, news service Dow Jones reported.

Earlier this year, Goldman Sachs bankers were saying that the office-sharing firm could soon become a US$65 billion company. But questions circulating around the firm’s business prospects quelled the hype on listing the hipster office sharing company.

According to news reports, WeWork is also in talks with its largest investor SoftBank Group to get more financing so that they can delay the listing.

In its nine years as a start-up, the New York firm has yet to turn a profit. The firm which is in its late stage venture, has more than 10,000 employees globally. It chalked up US$690 million in losses in just the first six months of 2019, bringing its total losses to almost US$3 billion in the past three years, filing from WeWork’s preliminary prospectus showed.

The year has seen exuberant interest in new listings of unicorn tech companies – privately held start-ups valued at over US$1 billion. Ride-hailing firms Lyft and Uber went public earlier in the year, but uncertainty over the firms and their ability to turn profitable caused a negative reaction to their share prices.

In June, workplace instant messaging app Slack debuted on Wall Street in a direct listing at US$26 per share and its shares have seen little lift over the past few months, with its latest price pegged at US$27.38. Meanwhile, Chinese retailer Miniso is said to be planning an IPO to raise around US$1 billion, in a share sale that could take place in Hong Kong or the US.

China’s ecommerce giant Alibaba is also in talks to file for as much as US$15 billion in the new listing. The ecommerce firm already has a listing on the NYSE, where it raised US$25 billion in 2014, chalking up the largest IPO listing in history.

But the ongoing civil protests in Hong Kong have caused the Alibaba listing to be delayed, sources told Reuters.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

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.