SoftBank Group Corp. is pushing for WeWork Cos. Inc. parent The We Co. to shelve its planned IPO, which has received a mild reception from investors, London's Financial Times reported, citing people briefed on the discussions.
SoftBank is the biggest outside investor in the coworking company, which was valued at $47 billion when SoftBank invested $2 billion in early 2019.
The pushback against the IPO comes at a time when SoftBank is attempting to raise $108 billion for a second iteration of its Vision Fund to invest in technology startups. The publication noted, citing the people, that the Japanese company could face difficulties in raising the fund if WeWork's listing comes at a steep discount to the previous funding round.
The publication also noted that The We Co. would lose access to a $6 billion loan from a group of banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. that was conditioned on raising at least $3 billion in new investments through the IPO.
Earlier in September, WeWork was reportedly considering reducing the IPO valuation to about $20 billion and was said to be planning to proceed with an investor roadshow despite the valuation concerns.
The We Co. and SoftBank declined to comment, the publication added.
