(CapitalWatch, Nov. 29, New York) Chinese workspace solutions provider AgiiPlus Inc. has set the terms of its initial public offering in New York, seeking to raise up to $43.5 million of new capital for business expansion.

AgiiPlus has long been pursuing the U.S. public listing status. Earlier this year, AgiiPlus terminated its SPAC merger deal with Goldenbridge Acquisition, which would value the company at a $578 million enterprise value. Now, it has turned to the more traditional and tedious IPO process.

AgiiPlus is offering 8.7 million of its ordinary shares at the expected price range of $4 to $5 apiece. The underwriter, US Tiger Securities, Inc., may acquire an additional 15% of the shares offered upon the IPO as a greenshoe option.

The company is headquartered in Shanghai, while the entity expected to list on the Nasdaq is an offshore holding, according to the securities filing. Previously, a portion of AgiiPlus's business operated as a variable interest entity (VIE), but that structure was split off in May 2022 and the former VIE's financial results are no longer consolidated into AgiiPlus.

Founded in 2016, AgiiPlus offers "brokerage and enterprise services, customizable workspace renovations with smart building solutions, and high-quality flexible workspaces with plug-in software and on-demand services," with operations in China and Singapore.

The company operates a platform connecting workspaces with digital services, namely, renovation, administration support, finance, legal, and human resources.

As of June 30, AgiiPlus maintained 65 workspaces with about 45,607 workstations in seven cities: Shanghai, Beijing, Nanjing, Suzhou, Jinan and Xiong'an in China, and Singapore. The enterprise services subsidiaries of AgiiPlus counted 38,807 enterprise customers and 377,108 registered members. Its target clients are freelancers, microenterprises, SMEs, or large enterprises.

Last year, AgiiPlus booked $68.6 million in revenue, up 29% from 2020, on net loss of $43.5 million. In the first half of 2022, the company recorded $38.4 million in revenue, up 28% year-over-year, on net loss of $19.3 million.

As factors fueling its growth, the company cited China's urbanization and the increase of white-collar workers. However, AgiiPlus has been negatively impacted by Covid outbreaks and the lockdowns of 2020 and this year. The occupancy of its workstations decreased from 85% as of December 2021 to 80% as of June 2022.

AgiiPlus said it plans to use the IPO capital to boost its technology, expand geographic coverage, and seek potential M&As, among other operational purposes.

The company expects to be traded on the Nasdaq Capital Market under the ticker "AGII."