Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo  >  SoftBank Group Corp.    9984   JP3436100006

SOFTBANK GROUP CORP.

(9984)
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

SoftBank : Window closing fast for WeWork parent to launch IPO this year

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/18/2019 | 02:40am EDT
FILE PHOTO: The WeWork logo is displayed on the entrance of a co-working space in New York

NEW YORK (Reuters) - WeWork owner The We Company faces strong headwinds in achieving its goal of launching an initial public offering (IPO) by the end of the year after postponing it this month, fund managers and capital markets professionals said.

The U.S. office-sharing startup was getting ready to launch an investor road show for its IPO this week, before making the last-minute decision on Monday to stand down following a lackluster reception from investors, people familiar with the matter said.

Reuters reported last week that We Company was considering seeking a valuation in its IPO of between $10 billion and $12 billion, a dramatic discount to the $47 billion valuation it achieved in January.

We Company is hoping it can kick off its IPO as early as next month, once it has updated its quarterly earnings with what it hopes to be a strong financial performance between July and September, according to people familiar with its thinking. We Company declined to comment.

However, it runs the risk of coming up against weak IPO market demand because many fund managers become more risk-averse in the fourth quarter, as time runs out to make changes to their portfolio before they close their books for the year.

"WeWork's decision to delay its IPO only days before the road show, until sometime before year-end, hinders its ability to control the narrative," said Dan Morgan, senior portfolio manager at Synovus Trust in Atlanta.

We Company is looking to raise at least $3 billion in its IPO. Since 2001, there have been 21 such sizeable U.S. IPOs which raised in excess of $3 billion, of which only two were in October, one came in November and none in December, according to financial data provider Refinitiv.

This puts the heavily loss-making company in a bind. It must raise at least $3 billion in an IPO before the end of 2019 as part of a $6 billion debt deal it agreed with banks last month, or find alternative funding, according to people familiar with the matter.

"Going out at the end of the year means the overlap of Thanksgiving to Christmas. No one is home. They need to go out and they likely will in October or early November," said Duncan Davidson, general partner at Bullpen Capital, an early-stage venture capital investment firm.

We Company's chief executive, Israeli-born Adam Neumann, is also reluctant to pursue an IPO around the Jewish holidays, according to people familiar with the matter. Rosh Hashanah and Yom Kippur fall on Sept. 29-Oct. 1 and Oct. 8-9 respectively.

CEO 'HUMBLED'

We Company's decision to delay its IPO indicates it did not feel confident that the corporate governance changes it unveiled on Friday, slightly loosening Neumann's grip on the company, were enough to woo investors concerned about its lack of a path to profitability.

In the run-up to the launch of its IPO, We Company faced concerns about its corporate governance standards, as well as the sustainability of its business model, which relies on a mix of long-term liabilities and short-term revenue, and how such a model would weather an economic downturn.

In a sign of contrition, Neumann told staff on Tuesday he had been "humbled" by the IPO effort so far and said he had lessons to learn about running a public company, the Financial Times reported, citing people who saw the presentation.

"Coming back, retapping the IPO market and trying to get a better reception is going to be about the company showing more progress than it's shown this time, to make investors more comfortable with WeWork," said Kathleen Smith, principal at Renaissance Capital, a provider of institutional research and IPO ETFs.

(Reporting by Joshua Franklin and Lance Tupper in New York; Editing by Cynthia Osterman)

By Joshua Franklin and Lance Tupper

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SOFTBANK GROUP CORP.
10/10RENESAS ELECTRONICS : Unveils RA Family of 32-Bit Arm Cortex-M Microcontrollers ..
AQ
10/10Japan's Unizo says rejected bids from local fund, Blackstone
RE
10/09ASIA MARKETS: Asian Markets Erase Early Losses On Reports Of Partial Trade De..
DJ
10/09Cadence Collaborates with Arm and Samsung Foundry on Delivery of 5LPE Flow fo..
AQ
10/09Top shareholder in Japan's Unizo says wants explanation after $1.3 billion ab..
RE
10/08ASIA MARKETS: Asian Markets Retreat As Trade Tensions Ratchet Back Up
DJ
10/08Arm Holdings still aiming for 2023 return to public markets, CEO says
RE
10/08Arm joins with GM, Toyota to find common ground on car chips
RE
10/08SOFTBANK : Mubadala weighing investment in second SoftBank tech fund - exec
RE
10/08SOFTBANK : boss 'embarrassed' by credentials
AQ
More news
Financials (JPY)
Sales 2020 9 777 B
EBIT 2020 1 217 B
Net income 2020 1 369 B
Debt 2020 10 405 B
Yield 2020 0,95%
P/E ratio 2020 6,17x
P/E ratio 2021 13,4x
EV / Sales2020 1,94x
EV / Sales2021 1,99x
Capitalization 8 606 B
Technical analysis trends SOFTBANK GROUP CORP.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 17
Average target price 7 049,75  JPY
Last Close Price 4 156,00  JPY
Spread / Highest target 155%
Spread / Average Target 69,6%
Spread / Lowest Target 34,0%
EPS Revisions
Managers
NameTitle
Masayoshi Son Chairman & Chief Executive Officer
Raul Marcelo Claure Chief Operating Officer, Director & Vice President
Yoshimitsu Goto CFO & Senior Managing Executive Officer
Tadashi Yanai Independent Outside Director
Ken Miyauchi Director
Sector and Competitors
1st jan.Capitalization (M$)
SOFTBANK GROUP CORP.-40.67%79 279
AT&T31.67%274 597
CHINA MOBILE LIMITED-10.54%173 849
NTT DOCOMO, INC.18.47%87 488
T-MOBILE US25.03%67 955
KDDI CORPORATION14.28%63 900