International Workplace Group is considering an IPO in New York for its US-based operations, according to Sky News. Such a spinoff could reportedly be worth up to £3 billion (about $3.67 billion), nearly equal to IWG’s £3.64 billion (about $4.45 billion) market cap as of August 26. The company did not immediately respond to PitchBook’s request for comment.
The news came less than two weeks after WeWork released its S-1 document August 14, revealing 1H 2019 losses of over $900 million while holding a footprint comparable to IWG’s. As a result, IWG’s consideration of an IPO is perhaps a direct response to WeWork’s advance, evidenced by IWG’s insistence of only considering underwriters that are not involved with WeWork’s IPO, again per Sky News.
IWG isn’t the only player in this space making moves after WeWork’s S-1 reveal.
On Thursday, New York-based Industrious reeled in $80 million from Brookfield Property Partners and fitness club provider Equinox, among others. CEO Jamie Hodari expects the company to be profitable within a “few months,” according to Reuters. On Wednesday, New York-based Knotel announced it had pulled in $400 million at an over $1 billion valuation in a round led by Wafra.
Lesser-known competitors, such as The Yard, Convene, BHIVE Workspace, Alley, and The Wing, also stand to possibly beef up their game as WeWork’s IPO plays out.
