LONDON – A leading shareholder in International Workplace Group has called for the office rental company to quit its London listing and relocate to a U.S. stock exchange to boost shareholder value, a letter published on Tuesday showed.
Miami-based investment firm Buckley Capital Management, which describes itself as one of IWG’s 15 largest investors, said trading on the London Stock Exchange was not rewarding IWG with the valuation multiple it believes the company deserves.
“We believe that a U.S. listing would expose IWG to a new and more liquid market with investors who have a greater appreciation of its leverage levels and business model,” Buckley said in the letter, which was released to media outlets and other investors.
Buckley said it had been encouraged by discussions with IWG’s board and management on the issue of maximizing shareholder value but said the company must take more immediate action to unlock its true value fully.
Besides immediately appointing advisers to proceed with a U.S. relisting, the investor said IWG should also execute a share buyback program.
“If a U.S. listing and share buybacks do not cause a significant rerating in IWG’s shares, we are convinced that management should explore a sale of the business,” the shareholder added.
Buckley, which has held shares in IWG since February 2023, said it was drawn to the company by the potential to increase free cash flow per share by more than 25% a year, with initial expectations of between 300% and 600% gains in IWG’s shares over time.
However, the shares have fallen by about 50% in the past five years, Buckley said, highlighting “a significant dislocation” between the share price and the intrinsic value of the company.
(Source: Reuters)
