Citigroup and Credit Suisse Group have dropped out of the U.S. initial public offering of Chinese shared workspace provider Ucommune, thwarting at its wanted valuation, two sources with direct information of the matter stated.
Ucommune’s latest filing with the U.S.Securities and Exchange Commission lists Chinese banks Haitong International and China Renaissance as guiding the planned IPO.
Earlier filings had named Citigroup and Credit score
Suisse, however, they both walked away over the past few days since they could not agree on a possible valuation with Ucommune, the sources said, declining to be recognized since the data was private.
Ucommune didn’t instantly respond to a request for remark, while Citigroup and Credit Suisse rejected to comment.
The valuation that Ucommune is continuing and the valuation that Credit Suisse and Citi believed possible couldn’t be realized.
The banks had concerns about Ucommune’s fast timeline to complete its IPO, another of the sources stated. The firm is seeking a listing as soon as early January, the source added.
Data provider Dealogic stated Thursday it was not aware of any firm ever going public on a U.S. exchange without a Western bank, as would be the case with Ucommune.
A Western bank may nonetheless be part of Ucommune’s IPO syndicate prior to its stock market debut, one of many sources stated.
In recent months, Credit Suisse has further exited the U.S. IPOs of Chinese drone manufacturer Ehang and Chinese cryptocurrency mining tools manufacturer Canaan prior to their listings, based on regulatory filings.
Ucommune raised $200 million in November 2018, giving the Beijing stationed organization a valuation of $2.6 billion.