WeWork’s China rival Ucommune files IPO in the US

China’s WeWork equivalent Ucommune has filed an initial public offering in the US – sources. After WeWork’s disastrous attempt at getting listed, one would expect others to take a step back and perhaps tread more cautiously.

Ucommune is China’s biggest office space-sharing company based at the heart of China, Beijing. Sources familiar with the matter revealed that the firm filed a confidential initial public offering with US regulators and is expected to launch the IPO before the year comes to a close, two close sources told Reuters.

The decision to list at this time has come as surprise to many investment bankers given the similarity between Ucommune and embattled WeWork, whose IPO flopped causing a major shakeup of its market valuation.

Ucommune’s 2018 private valuation placed the firm’s net worth at about $2.6 billion compared to its US rival’s $47 billion. But Ucommune seems keen writing its own unique story. The firm has appointed Citigroup (C.N) and Credit Suisse (CSGN.S) to work on a listing, while Bank of America (BAC.N) has a minor role in the deal, the source disclosed to Reuters.

Information about Ucommune’s IPO is yet to be made public, but preliminary meetings have been going on since September. According to close handlers of the deal, the space-sharing company has been holding private discussions with investors before finally going public with their plan.

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

Just like its US counterpart, Ucommune has been reporting losses in its balance sheets. But despite that, the company is still hoping to strike a deal before the end of 2019.

Reuters’ efforts to reach Ucommune for a comment on the IPO proved futile as the firm never responded to emails or phone calls. The same was the case with Citigroup, Credit Suisse and Bank of America when contacted for a comment.

According to its website, Ucommune has coverage across 37 countries with over 200 workspaces. Apart from its Beijing headquarters, the firm also features offices in New York and Singapore.

In 2018, the workspace giant went for its fourth round of private funding raising $200 million which it said would be used to expand to 150 other locations globally over three years.

The firm is said to be seeking about $200 million in funding from its IPO.