From London To Wall Street: WeWork Rival IWG Reportedly Eyes US Listing For Enhanced Valuation

IWG Plc IWGFF, a provider of flexible office solutions, is reportedly considering a strategic move to list on the U.S. stock market, seeking to align its market valuation with tech giants such as Uber Technologies Inc. UBER and Airbnb Inc. ABNB.

The company, known for its Regus office spaces, has switched the currency in which it reports to dollars and is reviewing adopting U.S. GAAP accounting standards to reflect that most of its earnings are generated in the region, reported Bloomberg.  

Amid considerations for a U.S. listing, IWG’s CEO, Mark Dixon, suggests that a single listing in the U.S. could be forthcoming, as per the report. This shift would highlight not only the firm’s growth strategy, including a pivot to franchising to spur center openings but also its adaptation to post-pandemic work patterns favoring flexible, local office spaces.

IWG’s revenue hit £3.3 billion ($4.2 billion) last year, underscoring its expansion success. The move to a U.S. listing is part of IWG’s broader strategy to reposition itself as a tech-forward platform business, distinct from traditional office space providers. 

However, achieving a valuation akin to its tech counterparts remains challenging. Despite its efforts and a business model pivot, IWG contends with investor skepticism, particularly given the absence of direct competitors for benchmarking, aside from the smaller and structurally different WeWork Inc. WEWKQ.

“If you look at Uber or Airbnb, their multiples are much higher than we are, we are at six to seven, they are in the 30s to 50s,” the report quoted Dixon. “People understand Uber or Airbnb, they just don’t understand us yet. This is a platform business.”

Price Action: IWGFF shares closed lower by 0.42% at $2.35 on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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