SoftBank, WeWork's largest external shareholder, is urging the sublimation office space to pause its IPO process after a cold-blooded reception by potential investors, Eric Platt and James Fontanella-Khan of the Financial Times reported.
The news comes just days after The Wall Street Journal reported that WeWork – which technically qualified itself as The We Company earlier this year – was considering lowering its estimated public market estimate to less than half, before what would be one of the higher profile public offerings this year.
A WeWork spokesman told Business Insider: "The company is at a quiet time and will politely decline to comment."
WeWork can reduce its IPO valuation to under $ 20 billion and may even delay the offering, The Wall Street Journal reported Sunday, citing unnamed sources. The company was valued at $ 47 billion in the last round of fundraising.
This week, the company plans to launch an investor travel show to increase interest in the offering, The Journal reported. WeWork underwriters also plan to meet with investors to discuss possible changes to ensure a successful IPO, writes The Journal.
SoftBank and the Saudi-supported Vision Fund have invested more than $ 1
According to the report, SoftBank is concerned that if WeWork becomes public at a valuation much lower than its private market valuation, it may harm the firm's ability to raise its second Vision Fund, hence its choice to pressure the company to drop its IPO plans.