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Report: WeWork weighs governance reforms to improve investor interest in IPO

WeWork Cos. Inc. may make major governance changes to allay investor concerns ahead of its parent's planned IPO later in September, Bloomberg News reported, citing people with knowledge of the matter.

JPMorgan Chase & Co. and Goldman Sachs Group Inc., the lead financial advisers for The We Co.'s IPO, reportedly are concerned about moving forward with an offering that could value the company as low as $15 billion. WeWork is looking at governance reforms as a means to improve investor interest, the people told the news outlet.

The coworking giant is aiming to complete a roadshow and price the IPO before Rosh Hashanah, effectively setting a Sept. 27 deadline, one of the people told the news outlet.

WeWork executives have convened since Sept. 5 in London, Boston and Toronto with investors who could participate in an IPO, or help provide funding privately, and bankers running the IPO have spurred the company to proceed with the sale, a person with knowledge of those meetings reportedly said.

The governance changes being considered remain unclear, although any decision ultimately lies with WeWork co-founder and CEO Adam Neumann, who keeps voting control of major decisions via a three-class share structure and has been a strong proponent of the IPO, the people reportedly added.

A WeWork spokesperson did not comment, according to Bloomberg.