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After months of speculation about International Workplace Group (IWG) delisting from the London Stock Exchange and moving to the U.S. stock exchange, the coworking giant is now receiving suggestions from one of its largest American shareholders to make the jump.
Miami-based investment firm Buckley Capital Management, one of IWG’s top 15 investors, published a letter on Monday urging the flexible workspace provider to officially make a move to a U.S. listing.
The U.S.-based investors believe IWG’s share price is significantly undervalued, and that, despite the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) being “on track to reach a record high this year, the Company’s [IWG] share price continues to languish and is currently down approximately 50% over the last five years.”
The urge to switch stock listings is described as a way for IWG to realize its full market potential and attract investors who better understand its business model.
Bloomberg reports that the firm’s letter also calls for a share buyback program to bolster the company’s share price.
Over the past year, the firm has been aligning its financial practices with U.S. standards including a company transition to U.S. dollar reporting, which went into effect on Jan. 1. There’s also been speculation that the firm is considering the adoption of US GAAP accounting standard. Though no office announcements from IWG have been made.
Buckley Capital Management’s letter suggests IWG should explore a sale to private investors if these initiatives fail to uplift the company’s stock.
This open proposal from the shareholders shows a decisive push for more action to build upon IWG’s market valuation and to capitalize on its growing footprint in the overall flexible workspace arena.
The company recently posted a record first half of the year revenue of $2.1 billion for 2024, largely driven by the rise in hybrid work arrangements. The company’s adjusted EBITDA rose 13% to $274 million, with a 19% year-over-year increase in room signings.
The future of work is being influenced by flexible workspace providers like IWG, and as more workers around the world demand flexible spaces these decisions will continue to influence commercial real estate and work environments. A move from the U.K. to U.S. stock listing such as the one proposed by Buckley Capital Management could potentially offer IWG a new edge in an increasingly competitive market.
