Citigroup Inc and Credit Suisse Group AG have dropped out of the US initial public offering of Chinese shared workspace provider Ucommune, balking at its desired valuation, reported Reuters.
Ucommune’s latest filing with the US Securities and Exchange Commission lists Chinese banks Haitong International and China Renaissance as leading the planned IPO.
Earlier filings had named Citigroup and Credit Suisse, but both walked away over the past few days because they could not agree an achievable valuation with Ucommune, said Reuters sources. Ucommune raised $200 million in November last year, giving the Beijing-based group a valuation of $2.6 billion.
“There was a big gap between what the company had hoped to achieve and where the market is sitting now,” said one of the sources, adding that pressure for a higher valuation also came from some investors who took stakes in recent private funding rounds.