Shares in serviced office group IWG (IWG) vaulted 6% higher to 304p on a news report over the weekend that the firm’s founder and chief executive Mark Dixon was considering a break-up of the group to release ‘significant value’ for shareholders.
The company, which owns the Regus and Spaces office-rental brands, is contemplating a series of corporate actions including a potential listing of its Worka app in the US either though a flotation or a merger with a special purpose acquisition company (SPAC), according to Sky News.
Other options being explored include separating the owned-property business from the global franchising operation in order to unlock value.
In the past the firm has considered putting itself up for sale, and as recently as June was in talks with US investment group CC Capital Partners, which recently acquired Manchester-based supply chain technology company BlueJay Solutions for $1.7 billion.
Last month IWG posted first half results which showed an improvement in revenues and occupancy growth in the second quarter thanks to new contract wins and the move to hybrid working.
Pricing trends in rental offices improved during the first half with a ‘very strong’ recovery in meeting room and day office usage in the second quarter.
Meanwhile, 17 new franchise agreements were added including a first deal in the US and a joint venture with Hysan in Hong Kong.
‘The significant move to hybrid working has created unprecedented demand for our flexible work products’, said the chief executive.
‘This fundamental shift in the way people work is clearly a positive tailwind for IWG over the medium to longer term and we are seeing increasing levels of interest from enterprises wishing to transform their working practices.’