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CHINA BRIEF | China WeWork rival Ucommune puts brakes on US IPO plan, plans backdoor listing

Written by Wency Chen Published on 

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The shared-office model has been disrupted both by the coronavirus pandemic and the public collapse of WeWork.

Ucommune, a Chinese workspace company similar to WeWork, has withdrawn its USD 100 million initial public offering (IPO) filed on December 11, 2019, in light of “current capital markets condition [sic]” according to a filing submitted to the US Securities and Exchange Commission (SEC) on August 6.

The Beijing-based company’s path to its planned IPO on the New York Stock Exchange was struggling with its own money-losing business and the tougher market environment. The shared-office model has been disrupted both by the coronavirus pandemic and WeWork’s scrutinized business.

The Luckin accounting scandal has also put more pressure on Chinese tech companies mulling an IPO in the US.

Nonetheless, the company hasn’t stopped its go-public plan. Last month, the company announced that it had entered into a definitive merger agreement with Nasdaq-listed Orisun Acquisition, which is a Special Purpose Acquisition Company (SPAC), 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 article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.  

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