Ucommune Officially Withdraws $100 Million US Listing Plan, Instead Targets SPAC Merger
Chinese co-working space provider Ucommune Thursday announced the withdrawal of its initial public offering plan from the New York Stock Exchange where it originally filed in December 2019.
“In light of the current capital markets condition, the company is considering other alternatives and has determined not to proceed at this time with the offering and sale of the securities proposed to be covered by the Registration Statement,” Ucommune said in its official request submitted to the U.S. Securities and Exchange Commission (SEC) on Thursday.
The company entered into a merger agreement with New York-based acquisition company Orisun Acquisition Corp. on July 8. The combined public entity will equate to a valuation of approximately $769 million upon the closing of the transactions. The newly-merged company is expected to trade on NASDAQ under a new ticker symbol as early as the third quarter of 2020, Chinese business outlet The Latest IPO reported Friday, citing people close to the deal.
SEE ALSO: Ucommune Enters Merger Agreement with Acquisition Company for NASDAQ Trading Under New Ticker
According to its now-invalid prospectus filed last December, the Beijing-based company reported a net revenue of 874.6 million yuan ($122.4 million) in the nine months ended September 30, 2019, a 209.9% increase from the same period last year. Its spaces in operation across China increased from 66 in 2017 to 171 in 2019.
However, the company has suffered gradually expanding losses, incurring net losses of 270.9 million and 572.8 million yuan for the nine months ended September 30 in 2018 and 2019, respectively. It attributed the significant losses to the opening of additional spaces, reconstructing and acquisition of businesses, according to its prospectus.