Amidst the ongoing WeWork IPO debacle, hardly any other co-working space operator would dare to dream about a public listing. However, for the Chinese co-working leader Ucommune, WeWork’s failure is more of an opportunity rather than a turn off. According to a WeChat financial blog IPO News, Ucommune has already handed in all the required documents to the SEC and is anticipating an IPO in the US in late December or mid-January.
According to the latest internal statistics, Ucommune currently operates 209 office spaces, 180 of which have already been officially put into use. Although the direct office space rentals are still the main source of revenue for the firm, accounting for 90% and 75% in 2017 and 2018 respectively, rentals’ share of the company’s revenue stream is expected to plummet to about 65% in 2019.
At the same time the proportion of revenue generated via Ucommune’s enterprise services has been growing, distinguishing it from WeWork, who still garner most of their revenue from rentals. Mao Daqing, founder and CEO of Ucommune, once mentioned that he hoped that the ratio of rental revenue to total revenue would fall below 50%, making way for other revenue streams.
Ucommune was established in April 2015, by Mao Daqing, a real estate veteran with experience working in executive positions at Vanke Group. The company has gone through 12 rounds of financing, raising over $738 million from investors like ZhenFund, Sequoia Capital, Sinovation Ventures, and others.