Office sharing startup WeWork officially has withdrawn the prospectus for its initial public offering, less than a week after it voted to oust former CEO Adam Neumann.
"We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong," said new We Co. co-CEOs Artie Minson and Sebastian Gunningham in a statement, according to a statement from the company. "We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future."
There have been reports that SoftBank (SFTBY) , which is WeWork's biggest investor, has been pushing for the company to delay the IPO in order to avoid a write-down for the Japanese tech company.
SoftBank invested $11 billion in the company earlier this year at a $50 billion valuation. However, since then We Co.'s valuation has plummeted as investors were able to get a look under the hood of the company through its IPO prospectus.
The IPO market has been choppy in 2019 with entertainment company Endeavor Group postponing its initial public offering last week a day before it was set to go public, and Peloton Interactive (PTON) - Get Report closing down sharply in its first day of trading.
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