The past month has been less than ideal for WeWork, with the latest development being a delay in its IPO listing, which it initially outlined on 14th August.
In that time the co-working company’s finances have come under scrutiny, especially as the firm was operating at a loss in many instances. Added to this is the behaviour of its CEO Adam Neumann, which resulted in him stepping down from his position last week to a non-executive chairman role.
These developments are particularly noteworthy as WeWork recently began operating in South Africa. Our own offices are even situated at the company’s Rosebank location. WeWorks plans to expand rapidly across the country in coming months and years.
As for the IPO listing, that has been placed on delay, although a new date or indeed a desire to list once again has not been detailed at this stage.
“We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong. We are as committed as ever to serving our members, enterprise customers, landlord partners, employees and shareholders,” explained Co-CEOs, Artie Minson and Sebastian Gunningham, in an official statement.
“We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future,” they concluded.
As such it looks like WeWork may have jumped the gun when proposing its IPO, and now it plans to focus on making itself more profitable to investors before listing again.
Is WeWork going anywhere?
Probably not, but it does mean that things may be streamlined at the firm. To that end there are reports floating around that WeWork is planning some retrenchments, as well as selling off some of the companies it has acquired in recent years.
For now WeWork has not commented on either report, but it will prove interesting to see how the company aims to function in the coming year.