WeWork’s parent, ‘The We Company’ filed to withdraw its initial public offering, a week after the SoftBank-backed office-sharing startup ousted founder Adam Neumann as its chief executive officer.
The withdrawal of its IPO prospectus formalizes the end of the New York-based company’s pursuit of a near-term listing and allows Neumann’s successors to proceed with the company’s financial turnaround without disclosing as much information publicly.
The company’s high-yield bond price slid to a record low after the move was announced earlier in the day.
The scrapping of the IPO marks the conclusion of a tumultuous few weeks for the office-sharing firm, which failed to excite investors who raised concerns about its burgeoning losses and a business model that involves taking long-term leases and renting out spaces for a short term.
According to the IPO prospectus, it filed earlier in September, We Company had cash and cash equivalents of roughly $2.5 billion as of June 30. However, while revenue doubled to nearly $1.8 billion in 2018, its losses also more than doubled to $1.9 billion.
The platform covers e entire enterprise technology space- including emerging technologies like RPA, AI, cloud, automation, and the entire gamut of digital transformation tools, strategies and management decisions.
