Chinese office-sharing startup Ucommune files for IPO

Chinese office-sharing company Ucommune Group Holdings Ltd. filed for an initial public offering on Wednesday, with plans to list on the New York Stock Exchange. Haitong International, China Renaissance, The Core Securities, Prime Number Capital and CRIC Securities are lead underwriters on the deal. The company is planning a dual-class structure of class A and class B shares, with B shares carrying 15 votes per share. Most of the class B shares will be held by Chief Executive Daqing Mao, according to the filing. The company said it’s aiming to raise $100 million, although that sum is likely a placeholder. Proceeds of the deal will be used to expand services, strengthen technologies and for working capital. “We are China’s leading co-working community operator with global impact and ambitions,” says the prospectus. “We operate the largest co-working space community in China in terms of the number of co-working spaces, aggregate managed area and number of cities covered in China as of September 30, 2019, according to Frost & Sullivan.” The deal comes after WeWork parent The We Company was forced to postpone its planned IPO amid concerns about its massive debt and heavy losses. Ucommune had a loss of $80.2 million in the nine months to Sept. 30, wider than the $62.3 million loss posted for all of 2018. Revenue came to $122.4 million in the nine-month period, compared with $62.7 million for all of 2018.

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