WeWork's Chinese rival Ucommune files for US IPO

HONG KONG • China's biggest shared workspace provider Ucommune has filed a confidential prospectus with the US securities regulator as it seeks an initial public offering (IPO) before the year end, two people with direct knowledge of the matter said.

Ucommune's decision to explore a listing has surprised investment bankers, given the similarities between its business and that of embattled United States rival WeWork, which this week had to be bailed out in a US$10 billion (S$13.6 billion) deal after investors soured on an IPO plan.

Beijing-based Ucommune, which was valued at US$2.6 billion about a year ago, has appointed Citigroup and Credit Suisse to work on a listing, while Bank of America has a minor role on the deal, the sources said.

A prospectus was lodged with the US Securities and Exchange Commission late last month, they said, and the company has held preliminary meetings to sound out investors before the formal public marketing process begins.

A decision to go ahead with the IPO will depend on the feedback provided by potential investors, the sources said.

A deal before the year end is still the company's target, they said.

Ucommune did not respond to calls and e-mails from Reuters seeking comment on its IPO ambitions. Citigroup, Credit Suisse and Bank of America declined to comment.

  • 200

  • Number of locations where Ucommune has shared workspaces.

The sources declined to be identified because the information has not been made public.

WeWork accepted this week a rescue package put together by major shareholder SoftBank Group that gives the Japanese investment giant control of WeWork and sharply cuts its valuation to US$8 billion from about US$47 billion at the start of the year.

Ucommune has shared workspaces in 200 locations across 37 markets, led by Beijing, Shanghai, Hong Kong, Los Angeles and New York, according to its website.

In November last year, it finalised its fourth private funding round when it raised US$200 million and said it would expand to 350 locations within the next three years.

REUTERS