Along the trend of the past few years shared office, following the listing of WeWork ready to share the office, ready to raise $ 3 billion of heat has not yet subsided, the result was ordered a halt, exactly how the same thing? KlipC with you the reader to find out.
According to industry analyst Mary Gowan KlipC revealed, WeWork investors suffered in the cold, their company's largest shareholder Softbank (SoftBank) are pushing this loss of property group to stop its move initial public offering of highly anticipated IPO.
Source: Google
We WeWork's parent company has plans to invest in Wall Street suffered its public financing 3 billion to $ 4 billion, but its corporate governance, payments to the co-founder and CEO Adam Neumann and the use of complex ownership structure and analysts criticized.
Softbank SoftBank and other Middle East Fund has shared this office inject more than $ 10 billion. But Softbank market enthusiasm has waned, because bankers slashed the valuation of the company after the listing can be obtained.
According to informed sources, although the valuation of between 15 billion to $ 20 billion, far below the $ 47 billion valuation estimate of when Softbank to invest $ 2 billion this year to WeWork, but the company is still tentative We investor appetite.
SoftBank Softbank is trying to raise $ 108 billion, second only to VisionFund fund aims to invest Kechuang enterprises. Informed sources said a substantial discount if We listed companies in the last round of financing, then the Japanese group could face financing difficulties.
According to the agreement reached earlier this year, WeWork next year from Softbank for $ 1.5 billion. KlipC disclosure of the access from the United States securities regulatory authorities in accordance with, as of June 30, the company is listed on the balance sheet by $ 2.5 billion in cash and cash equivalents.
We company before the initial public offering IPO citing mandatory restrictions on communications, Softbank declined to comment.
We shelved the listing if the company will lose $ 6 billion in loans to a large number of opportunities for bank JP Morgan Chase JPMorgan Chase and Goldman Sachs Goldman Sachs, etc., depending on the IPO financing new investments to get at least $ 3 billion.
WeWork: located in the core of the real estate market, "imaginary" company
Due to the lack of more than $ 9 billion in new capital injection, which could force major changes in business strategy happen in our company, including its aggressive expansion in more than 110 cities set up 528 branches.
Since 2016, the company lost more than $ 4 billion, although revenue doubled during the year, but still consumes a lot of capital. WeWork in its IPO filing that profit if needed, it could significantly slow the rate of expansion.
But investors are still skeptical about its business model, this model has not been tested to withstand sharp economic downturn. Some investors its long-term (average 15 years) lease office space, but expressed concern about the short time rental tenants practices.
WeWork trying to solve some of the problems investors and analysts in an initial public offering (IPO) raised before, Mr. Neumann has returned $ 5.9 million investment vehicle he received from the company "We" the right to use, we also last week disclosure, once the listing is completed, will add a female director in its all-male board.
We can not predict the prospects WeWork, through shared analysis KlipC industry, we believe WeWork business model (leasing office space, renovated to cut off a high price for lease), but is a traditional real estate company, there are a number of traditional real estate companies are also and WeWork engaged in the same business, so WeWork should not get a high valuation of technology companies.