BENGALURU - WeWork owner The We Company is considering slashing the valuation it will seek in an initial public offering to a little over US$20 billion , less than half the US$47 billion valuation it achieved in a private fundraising round in January, people familiar with the matter said on Thursday .
Other high-profile stock market listings this year, such as those of ride-hailing companies Uber Technologies and Lyft, have fared poorly in subsequent trading, amid investor skepticism over their lack of a concrete plan to profitability. The sources cautioned that no decision on the valuation has been taken and asked not to be identified because the deliberations are confidential. The We Company declined to comment. The Wall Street Journal reported earlier on Thursday that the We Company was considering an IPO valuation of around US$20 billion.
The mounting losses and concerns over how its business model would survive an economic downturn have raised skepticism from analysts and investors about the IPO. SOFTBANK BACKING WeWork, which was rebranded We Company earlier this year, is backed by Japan's SoftBank Group Corp, which has invested or committed to invest US$10.65 billion since 2017.
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