IPO Of The We Company Has Reportedly Been Delayed
The We company which is holding the company of short term property management and development company WeWork has decided to delay its public listing. The We company which operates in various fields under the We-related trade name has delayed its public offering because of some issues. The company’s planning for IPO was going on for a long time, and it’s now been put on hold because of private investors’ valuation. Earlier some private investors valued the We company nearly at $50 billion, and now public investors are showing concern about this valuation. Public investors who are likely going to invest a considerable amount of money into the company is not content with the company’s co-founder and CEO Adam Neumann. After facing such type of skepticism from the general investors, the company decided to change its board of directors and added some new critical managerial person. Neumann’s power has been restricted by the company, which was a primary concerning thing for general investors.
Last week the company made some changes into the voting power system. We company diluted the strengths of class B and class C shares which is ultimately going to restrict Neumann’s power. This decision will reduce the voting power which Neumann earlier had over the company’s ordinary shareholders. Such type of dominance by one single person restricts general investors from investing in a company. Now experts are saying that even these steps are enough to make public investors invest in the company. We work at a company’s management is trying their best to gain the trust of people for listing. But it seems like the extravagant valuation done by its private investors now costing real money. Now the venture capitalists will most likely be going to evaluate companies differently. Uber and Lyft after its public listing haven’t performed any better.