Wency Chen · · 1 min readWeWork China rival Ucommune puts brakes on IPO, plans backdoor listing
Ucommune, a Chinese workspace company similar to WeWork, has withdrawn its US$100 million initial public offering filed December 11 last year in light of “current capital markets condition [sic],” according to a US Securities and Exchange Commission filing dated August 6.
A Ucommune space in Singapore / Photo credit: Ucommune
The Beijing-based company’s path to its planned IPO on the New York Stock Exchange was struggling with Ucommune’s money-losing business and the tougher market environment. The shared-office model has been disrupted both by the Covid-19 pandemic and WeWork’s scrutinized business.
The Luckin Coffee accounting scandal has also put more pressure on Chinese tech companies mulling over an IPO in the US.
Nonetheless, the company hasn’t stopped its go-public plan. Last month, Ucommune announced it had entered a definitive merger agreement with Nasdaq-listed Orisun Acquisition, a special purpose acquisition company, or shell company that has no operations but can go public with the intention of acquiring or merging with a company. According to reports, Ucommune can go public through Orisun Acquisition in this quarter.
This report was first published on KrAsia.
Editing by Miguel Cordon
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