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WeWork Delays I.P.O. After cool reception from investors



WeWork, the shared office space giant, was able to get the support of some of the world's best investors, but it received a much colder reception as it tried to put its shares on Wall Street.

Faced with deep skepticism about their business model and corporate governance, the company has now suggested that it may not try to go public for another few months, and a person involved in the offer says it may be abolished hero.

This week, the company had been expected to launch a roadshow for the stock offering – where it put potential investors on the deal – two people said. This would have put it on track to start trading on the Nasdaq stock market by the end of next week.

But at a meeting on Monday, executives and advisers decided to shrug off plans for now after finding little appetite from potential investors, the people said, asking not to be identified for discussing internal overlays.

Analysts and investors have also said that WeWork has not provided details on profits and investments that will give them greater insight into how its properties are performing.

If the initial offer is significantly delayed, WeWork will have to find other ways to raise money.

Without a supply of new money, We Company may have to slow down the expansion, which spends hundreds of millions of dollars in cash. In the first half of this year, the company spent $ 1.5 billion in cash to run the business and expand its operations. It had nearly $ 2.5 billion in cash at the end of June.

It had expected to raise $ 6 billion from bank financing related to stock sales – but that money would only be available if the company raised at least $ 3 billion from the IPO

This funding has not yet been renegotiated, said one of the the people who briefed on the matter, though WeWork may eventually strike a new deal with the banks.


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