Investor Pushes IWG To Switch To NYSE Or Sell Company
International Workplace Group is severely undervalued, according to a shareholder urging the company to look at ways to up its share price — including listing in the U.S.
An open letter by Miami-based Buckley Capital Management LLC published Tuesday and reported by Bloomberg recommends the company look into a buyback program to electrify its stock or explore selling to a group of private investors. Buckley said it is a top 15 investor in IWG.
The Switzerland-based coworking company owns more than 1,000 spaces in North America. The largest coworking operators in the U.S., Regus and HQ, run a total of 1,176 locations, and IWG owns both of them. It also owns Spaces, another one of the top five coworking operators in the States, according to CoworkingCafe.
Buckley's letter says there is a gap between IWG's share price and its value, and switching to a U.S. listing would increase shareholder value and offer a bargaining chip for potential acquisitions.
The decline in the company's stock in London caused Buckley to push for drastic action, the letter says.
IWG's share price sits at £174.90 on the London Stock Exchange, or $224.72. The value of its shares has fallen 60% in London since January 2020, when it peaked at £469 a share, or $618, according to company data.
The company did consider listing in the U.S. earlier this year, as it wanted to convince investors of its value. IWG started reporting its currency in dollars and considered adopting U.S. accounting standards to show where over half of its earnings were coming from.
Pivoting to a franchisee model in 2023 allowed for aggressive expansion plans, a move Buckley's letter applauds. IWG brought in record-high revenue by the second quarter of that year as its profit jumped 154% to $102M. The company doubled its footprint by the end of 2023 and brought in $3.3B overall.
Businesses in the UK are abandoning the London Stock Exchange for the U.S. en masse, sending tremors of fear through the London stock market. Buckley's letter cites a building materials company based in Ireland whose share price received more than a 50% boost when it listed in the U.S. last September.
Coworking is on the rise, as a shift to hybrid work continues to increase demand for flex office spaces. Inventory grew 20% from December 2022 to June 2024.
