WeWork isn’t exactly going to have the dream IPO that most people have thought till date. Headquartered in New York City, WeWork is now seeking $20 billion-$30 billion in IPO valuation, according to Bloomberg sources. This is considerably lower than the private equity valuators may have actually wanted. The firm, founded in 2010, currently manages 10 million square feet of office space.
According to Bloomberg, the company, is looking at a valuation of between $20 billion and $30 billion which is actually less than the $47 billion mark projected at the beginning of the year.
WeWork owner, The We Company rents out workspace to clients under precise contracts, even though it pays rent for them under long-term rent-outs.
Founded by Miguel McKelvey and Adam Neumann, WeWork is looking forward to go public against an unstable market acquirement with the U.S. trade war with China that eventually lead to the worst August for Wall Street since the past four years.
The lower assessment also indicates how despite the company’s headlong expansion, there are worries over a discrepancy between its cash flow and accountabilities, as well as doubts over its corporate governance.
WeWork, which was rebranded “We Company” previously this year, is assisted by Japan’s SoftBank Group Corp (9984.T), which has invested or committed to invest $10.65 billion since 2017.
Previously the company had faced criticism for its all-male board and ‘sexist-frat-boy’ culture. As a response to this, WeWork appointed its first female director this month.
In terms of expansion, the company seems to be everywhere these days. It bought the iconic Lord & Taylor Building on Fifth Avenue in Manhattan for $850 million. It’s also opening a second headquarters in San Francisco.