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 WeWork, is preparing for a New York listing. WeWork’s 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 capitalisation is £3.64bn.
Earlier this month, IWG, owner of the Regus brand, announced plans to sell assets in the face of competition from WeWork. 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 centres 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.