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WeWork rival IWG mulls over spinoff for US business: report

New York

THE founder of IWG Plc is planning to spin off the firm's US business into a separately listed company in New York, Sky News reported, citing people familiar with the matter.

IWG chief executive officer Mark Dixon is in talks with investment banks about creating a standalone business to rival WeWork Cos, the London-based broadcaster said on its website.

Sky said that IWG's US operations could be worth as much as US$3.7 billion. IWG generated about 41 per cent of its US$3.4 billion of revenue in the Americas last year, according to data compiled by Bloomberg.

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IWG, which is the world's largest shared office provider and owns multiple office brands including Regus, is bigger than WeWork in terms of space. The firm has almost 60 million square feet (5.6 million square metres) globally, while WeWork had 45 million square feet as of March. WeWork's largest backer, SoftBank Group Corp, has valued the New York-based firm at US$47 billion, far in excess of IWG's market capitalisation, and its planned initial share sale may be among the year's biggest.

The company, which is based in Switzerland but listed in the UK, had a market value equivalent to US$4.5 billion at the close of trading last Friday. Mr Dixon said earlier this month that WeWork's high profile has helped boost revenue growth at IWG's US business. BLOOMBERG