Advertisement
Back To Daily Digest
Tags: BUSINESS

IWG Seeks Equity Raise To Expand And Acquire

IWG has revealed plans to raise a  £315 million war chest to fund its expansion and pursue acquisitions of rivals that have been impacted by the pandemic.

This shows that the company is confident in businesses seeking short-term, flexible office arrangements that want to expand their footprint to meet physical distancing guidelines.

The equity would allow IWG to “rescue” offices and brands that have been forced to close and taken a major hit due to the virus.

CEO Mark Dixon, who owns a 28.5% stake in the company, is personally putting £90 million into the equity raise.

IWG itself has experienced a big hit recently, with shares in the company falling 41% since the beginning of the year. However, the company’s net debt of £320 million is nearly 40% lower than it was 12 months ago.

The Latest News
Delivered To Your Inbox

“It’s no secret that their business model leaves them exposed,” said Calum Battersby, an analyst at Berenberg. “But net debt hasn’t really moved since the year end, suggesting that most of their customers have been able to pay or [IWG] has offset that elsewhere.”

In the meantime, the company has halted opening new locations, furloughed staff and scrapped its dividend. Additionally, the company’s board has taken a 50% pay cut and made deals for rent deferrals with its landlords. These measures haved saved the firm nearly £150 million.

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based out of Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

Latest on Daily Digest

Creating A Long-term Remote Working Plan

Technology Is Transforming The Way We Work

WeWork Expects Positive Cash Flow By 2021

Ucommune Goes Public Through Backdoor Listing

Colliers Predicts Bright Future For Offices

Essential Human Needs For A Healthy Workplace

This Is Not The End Of The Office

Ad
Advertisement

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad
Advertisement
Advertisement
Advertisement
Advertisement