IWG chief spends on shares to buy further into serviced office giant’s future

IWG chief Mark Dixon on Thursday showed a vote of confidence in the Regus serviced offices giant, snapping up shares worth £91.3 million.

He took part in a fundraise that gathered £320 million in total from new and existing shareholders, including many retail investors.

Dixon’s purchase, plus his existing shares, gives him a 28.5% stake in IWG worth about £700 million.

The shares were bought at 239p each, a 8.1% discount to yesterday’s close price. Shares in IWG today surged 55.6p to 315.8p.

Interest in the share offering came despite some industry concerns demand for offices will fall as companies embrace the working from home model used during the virus crisis.

IWG, whose office brands include Regus and Spaces, will use the proceeds to expand. The firm thinks businesses will continue to want flexible office options.

The company yesterday pointed to the potential for increased customer demand driven by a number of factors, including “increased space requirements to comply with social distancing”.