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WeWork sees stock market listing at the end of the year



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The parent company of WeWork states that the listing of the office-sharing company will be completed "by the end of the year".

We Company's much-anticipated IPO was fueled by fears that investors at the firm, which had a value of $ 47 billion (£ 37.8 billion), were going cold.

The company's update follows several reports citing unnamed sources that the listing could be postponed until at least October.

We Company should begin marketing the business to investors this week.

"The We Company is looking forward to the upcoming [initial public offering]which we expect to finish by the end of the year, and would like to thank all our employees, members and partners for their continued commitment," the company said in a statement.

The timing of the planned market debut was dubious as investor interest in the company seemed to be dwindling. Last week, Reuters reported that We Company could target a valuation of between $ 1

0 and $ 12 billion on its IPO, a significant discount to the $ 47 billion proposed in January. In recent months, We Company has been worried about Corporate Governance standards and the sustainability of the business model, which is based on a mixture of long-term debt and short-term revenue.

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Media playback is not supported on your device WeWork's model could make it vulnerable during an economic downturn.

The company rents out office space in the long term and leases it to companies and private individuals for more flexible rental conditions. This could lead to leasing payments being made even with tenants becoming scarcer.

WeWork also had to contend with questions about its complicated financial ties to founding board member Adam Neumann, who would retain control of voting rights over the company.

During this month, Mr. Neumann returned $ 5.9 million worth of stock to the company, which he had controversially received in return for his "We" trademark.

Concerns about a slowdown in global growth could also contribute to a difficult financial market trend This year, other high-profile offerings such as Uber are also seen.

Since launching WeWork in New York in 2010, it has expanded to more than 500 locations in 111 cities across 29 countries.

However, this rapid expansion was expensive. WeWork lost about $ 1.6 billion last year, though sales nearly doubled.


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