Investors who value their capital will not buy this IPO. Companies preparing to go public typically do their utmost to prevent the emergence of major red flags or de-emphasise any that might already exist. WeWork seems to be taking a contrary stance as it prepares to IPO seeking the same heady $47bn valuation attributed to SoftBank’s most recent investment, according to Guru Focus’ John Engle. The company is also planning on using its new status to raise capital from investors and other institutional investors, including pension funds, which could help fund an initial public offering (IPO) in 2018. Engle said that WeWork is inevitably poised for a dramatic fall from grace citing a preposterously high valuation and that investors should consider shorting the stock rather than investing in the IPO.
Companies preparing to go public typically do their utmost to prevent the emergence of major red flags or de-emphasise any that might already exist. WeWork seems to be taking a contrary stance as it prepares to IPO seeking the same heady $47bn valuation attributed to SoftBank’s most recent investment, according to Guru Focus’ John Engle. The company is also planning on using its new status to raise capital from investors and other institutional investors, including pension funds, which could help fund an initial public offering (IPO) in 2018. Engle said that WeWork is inevitably poised for a dramatic fall from grace citing a preposterously high valuation and that investors should consider shorting the stock rather than investing in the IPO.