WeWork IPO likely to be pushed back: source

Agence France-Presse

Posted at Sep 17 2019 09:03 AM

A woman exits a WeWork co-working space in New York City, New York US, January 8, 2019. Brendan McDermid, Reuters/file

NEW YORK, United States - Fast-growing office-sharing startup WeWork will likely delay its initial public offering until at least October, and may wait even longer, a source familiar with the plans told AFP on Monday.

The We Company, its parent firm, was thought to be moving forward with listing on the Nasdaq next week.

But the source, who asked not to be named, told AFP: "It's likely going to be postponed... possibly to October at the earliest."

WeWork had been expected to launch its IPO roadshow on Monday to market its shares to potential investors.

In a filing on Friday with the US Securities & Exchange Commission, the company said it hoped to trade under the stock symbol "WE."

But investors are wary about the valuation of the company, which dropped from $47 billion in January to less than $20 billion last week.

The company did not immediately reply to a request for comment from AFP. JPMorgan Chase and Goldman Sachs, the two main underwriters for the IPO, declined to comment.

The New York-based WeWork offers shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.

The company lost $1.9 billion last year, with revenues of $1.8 billion.