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Citi, Credit Suisse drop out of Ucommune IPO – report

By Elena Berton

The main IPO advisers dropped out of the Chinese workspace company's planned US public offering on valuation grounds

Citi, Credit Suisse drop out of Ucommune IPO report

Citigroup and Credit Suisse have dropped out of the US initial public offering of Chinese shared workspace provider Ucommune over its valuation, Reuters reported.

While Ucommune’s latest IPO filing listed Chinese banks Haitong International and China Renaissance as leading the offering, earlier filings had named Citi and Credit Suisse.

Both banks walked away over the last few days because they could not agree an achievable valuation with Ucommune, two people with direct knowledge of the matter told Reuters.

Ucommune, Citi and Credit Suisse were not immediately available to comment.

Ucommune raised $200m (€179.7m/£151m) in November 2018, giving the Beijing-based group a valuation of $2.6bn.

The company surprised investors in October with its decision to go public soon after larger US rival WeWork, which had been once valued at $47bn, scrapped its IPO amid concerns about its massive debt and heavy losses.

Ucommune had a loss of $80.2m in the nine months to September 30, wider than the $62.3m loss it posted for all of 2018.

The Beijing-based company runs shared workspaces in 200 locations across 37 countries, led by offices in Beijing, Shanghai and Hong Kong, as well as Singapore and New York.

The report of that Ucommune has lost two advisors comes just as Ping An Insurance’s OneConnect Financial Technology cut its planned U.S. IPO and halved its target valuation below the $7.5bn in its maiden funding round last year.

FURTHER READING: SoftBank-backed OneConnect halves valuation ahead of IPO

FURTHER READING: What happened to the WeWork IPO?

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