UCommune said to complete SPAC listing earliest in Q3

2020-08-08
|
Michael Liang

UCommune said to complete SPAC listing earliest in Q3

Co-working space operator UCommune Group submitted RW documents to the U.S. Securities and Exchange Commission (SEC) on August 6, and officially withdrew the independent IPO application, according to IPO Zaozhidao.


It mentioned that in view of the current capital market conditions, the company is considering other alternatives and has decided not to issue and sell securities for the time being.


On July 6, Orisun Acquisition Corp., a special purpose acquisition company (SPAC), announced that it has reached a merger agreement with UCommune and plans to acquire all shares in UCommune.


After the transaction is completed, the new company will be listed on the Nasdaq under the new stock code.


In other words, UCommune will complete its listing in the United States through the SPAC method. An investment banker close to the transaction revealed that it will be able to complete the entire process as early as the third quarter.


It is worth noting that the latest RW document of UCommune was signed by He Zhuangkun, and its title is Director and CEO.


The F-1 file submitted by UCommune to the SEC on December 11, 2019 shows that the company's founder, chairman and CEO are Mao Daqing, and He Zhuangkun is the director.


According to UCommune roadshow documents, Mao Daqing appeared as the founder, while He Zhuangkun was co-founder, director and CEO.


A person close to UCommune revealed to the media that “UCommune’s main work has been mainly carried out by He Zhuangkun and has been going on for a period of time; while Mao Daqing has more focused on new projects called 5LMeet."


After reaching a cooperation with Orisun, Mao Daqing once stated that this transaction "directly meets our strategic goals and will release our new and exciting growth potential, including the expansion of our lightweight asset model."


As of December 31, 2019, UCommune covers 46 cities in China and Singapore, with a total of 211 co-working spaces and more than 700,000 members.


In terms of financial data, UCommune's net income in 2019 was 1.179 billion yuan, an increase of 162.9% from 449 million yuan in 2018. UCommune predicts that the compound annual growth rate of revenue from 2017 to 2022 will be approximately 66%.


According to the agreement between Orisun and UCommune, the valuation of the new company after the merger will be $769 million. This valuation is based on the EV/revenue model adopted by UCommune, which is calculated at 4.01 times the estimated net income in 2021 at US$769 million.


It is reported that for Mao, who has worked in the real estate industry for more than 20 years and loves sports, especially marathons, is still looking to create new businesses after successfully bringing UCommune to the capital market. .


In 2016, Mao introduced publicly his second entrepreneurial project 5LMeet. At present, it has received more than 1 billion yuan in financing from Sequoia China, Zhen Fund, Gaorong Capital, Gopher Assets, ChinaEquity, GIC and other institutions.


As of May 2018, after completing the B+ round of financing, the valuation of 5LMeet has exceeded RMB 4 billion.


It is worth mentioning that 5LMeet, which is positioned as a space service provider, also focuses on the concept of "sharing", mainly providing a one-stop CO-LIVING community, covering social apartments, shared office, innovative business IP, and communities activities and other spatial content and formats.


In early June, 5LMeet completed the acquisition of the hot new bookstore "Spring Whispers Bookstore".


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