WeWork seeks $20 billion-$30 billion in IPO valuation: Bloomberg

(Reuters) – WeWork owner The We Company is targeting an initial stock market valuation of less than half of estimates from earlier this year, according to a report on Thursday, another sign of growing skepticism among investors about big but unprofitable technology names.

The company, expected to list shortly, is looking at a valuation of between $20 billion and $30 billion, Bloomberg reported, citing people with knowledge of the matter, well below the $47 billion projected at the start of the year.

The company, led by co-founder Adam Neumann, is looking to go public against a turbulent market backdrop with the U.S. trade war with China making for the worst August for Wall Street in four years.

The lower valuation also shows how despite the company’s breakneck growth, there are concerns over a mismatch between its cash flow and liabilities, as well as doubts over its corporate governance.

We Company rents out workspace to clients under short-term contracts, even though it pays rent for them under long-term leases.

WeWork, which was rebranded We Company earlier this year, is backed by Japan’s SoftBank Group Corp (9984.T), which has invested or committed to invest $10.65 billion since 2017.