WeWork’s China Rival Targets U.S. Listing in December

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A Spacious Inc. member works on a laptop computer inside of L'Apicio restaurant in New York, U.S., on Friday, March 31, 2017. Spacious is one of several new businesses with an unusual twist on co-working. The model of converting dining rooms or bars into shared offices is attractive to restaurant owners because it offers a new source of revenue during the work day, when their spaces are usually left dormant. , Bloomberg via Getty Images

(Bloomberg) -- Ucommune, the largest rival to WeWork in China, plans an initial public offering in the U.S. in December even as the better-known competitor still recovers from its botched IPO, according to people familiar with the matter.

The first-time share sale of the Chinese office-sharing provider could raise about $100 million, said the people, asking not to be identified discussing private matters. The four-year-old company is considering a public IPO filing as soon as the week after next, one of the people said.

The deal is poised to test investors’ appetite for co-working startups after WeWork canceled its IPO in September and is now valued at less than $8 billion -- down from a peak valuation of $47 billion in January. Once the most valuable startup in the world, WeWork had to surrender much of the company in an emergency bailout. Backed by All-Stars Investment Ltd. and Sequoia Capital, Ucommune was valued at $1.8 billion in August last year.

Details of the offering including timeline and size could still change as deliberations are ongoing, according to the people. A representative for Ucommune declined to comment.

Ucommune competes in China’s shared office space with WeWork and local rivals including KR Space and MyDreamPlus. The company is popular among the nation’s fast-growing crop of boot-strapped startups.

Ucommune was founded by Mao Daqing, a well-known figure in China’s property and tech circles. The grandson of Mao Ziyao, an architect who helped design Beijing’s Great Hall of the People, he spent time at Singapore’s CapitaLand Ltd. and giant homebuilder China Vanke Co. before starting his company in 2015.

The company got its start in China, but has begun setting up in cities such as Hong Kong, Singapore and New York, according to its website. It operates more than 200 co-working space in 44 cities. The company was known as UrWork until it changed its name after a WeWork lawsuit.

To contact Bloomberg News staff for this story: Carol Zhong in Hong Kong at yzhong71@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Peter Elstrom at pelstrom@bloomberg.net, Ville Heiskanen