Co-working giant Ucommune seeks $3b valuation in Nasdaq IPO: Report

Photo: Ucommune

China’s co-working space provider Ucommune is seeking a $3-billion valuation in a planned initial public offering (IPO) in Nasdaq that could take place as early as the third quarter of this year, according to a report by The Information.

According to sources quoted in the report, Ucommune, which was valued at $2.6 billion in its last funding round, is going ahead with a New York IPO after previously considering going public in Hong Kong.

DEALSTREETASIA has reached out to Ucommune for confirmation on the IPO and valuation. Citigroup and JPMorgan Chase, which have reportedly been hired to work on the IPO, have not commented on the IPO yet. In an earlier interview with this portal, however, Ucommune founder Mao Daqing hinted at a possible IPO this year.

In November, the company claimed that its valuation soared to $3 billion after it raised $200 million in a Series D round of funding led by Hong Kong-based All-Stars Investment. According to publicly available data, Ucommune has so far raised $650.3 million from 9 funding rounds.

Ucommune, China’s first co-working unicorn and Asia’s largest co-working space provider, currently claims to cover over 200 locations in over 37 cities globally, including Singapore, New York, Beijing, Taipei, Hong Kong and Shanghai. It now plans to expand to 350 cities in 40 countries around the world over the next three years.

At home, Ucommune is fighting off formidable competition. WeWork China raised $1 billion in debt in August from backer SoftBank after closing a $500-million Series B round in July. Another co-working space operator in China, MyDreamPlus, had raised $120 million in a Hillhouse Capital-led round.

In May 2018, Ucommune acquired its smaller rival Workingdom as a result of a strategic investment. The deal added an extra 20 locations, 15,000 registered members, and 50,000 square meters to its portfolio.

“We want to be more than a company that provides a place to work. When customers enter our premises, they form partnerships, network, and do business. This is more than just entering an office. They’re entering a marketplace,” Mao earlier said.

China’s co-working space sector has been growing at a year-on-year rate of 30 per cent. It is estimated that by 2019, the total operating area of co-working spaces in China will reach 51 million square metre.

Ucommune expects that by 2030, nearly 30 per cent of office space in the country will exist in the form of co-working spaces.

Also Read:

Chinese co-working major Ucommune raises $200m, valuation jumps to $3b

China’s co-working major Ucommune seeks $200m in fresh funding, eyes 2019 IPO

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.