IWG, the world’s largest shared office group, is in talks to spin off its US business into a separately listed company in New York. Mark Dixon, chief executive of the London-listed group, has held early-stage talks with investment banks about the plan, which was first reported by Sky News this weekend.
Mr. Dixon believes a spun-off US business could be worth as much as £3bn, according to Sky.
People close to IWG said over the weekend that no formal talks had been held with bankers and no advisers appointed. A New York listing is one of a number of options under consideration to create value for the business, the people said.
IWG declined to comment.
The development comes The We Company, parent of the shared office provider We work, is preparing for a New York listing. Wework’s
the prospectus said the company would raise $1bn in its initial public offering but the expectation is that it will raise much more.
IWG’S current market capitalization is £3.64bn.
Earlier this month, IWG, owner of the Regus brand, announced plans to sell assets in the face of competition from We work. It is also aiming to move over to a franchising model within two to three years to boost growth.
Under a “master franchise” deal agreed this year, IWG sold its Japanese operations for £320m cash to TKP, a Tokyo-listed provider of rented conference rooms and banquet halls, which will operate 130 flexible working centers under IWG’S brand.
This month, Knotel, a New York-based flexible office rival to WeWork founded only three years ago, reached “unicorn” status with a valuation above $1bn following a $400m funding round led by a Kuwaiti state-backed investment firm.
