WeWork's parent company, We Company, has delayed the office-sharing firm's initial public offering (IPO), according to multiple reports.
The IPO was tabled until at least next month amid questions over the company's value and corporate governance, The Wall Street Journal first reported on Tuesday.
According to Reuters, the decision was made Monday ahead of the company's planned investor road show. The wire service had previously reported that the We Company could seek a valuation of between $10 billion and $12 billion, well below the $47 billion estimated in January.
"The We Company is looking forward to our upcoming IPO, which we expect to be completed by the end of the year. We want to thank all of our employees, members and partners for their ongoing commitment,” the company said in a statement. WeWork declined to comment further.
Japan's Softbank Group Corp, which has invested in the We Company, has reportedly supported the delayed IPO. Softbank has also talked about supporting the IPO by purchasing shares, sources told Reuters.
We Company reportedly determined Monday that even with Softbank's support, the IPO would have raised just more than $2 billion, less than its goal of at least $3 billion.