IWG, owner of the flexible office group, dismissed 17% of the stock price because of “machine sales” | IWG

The boss of a flexible office company IWG Shares fell 17% on Tuesday because of “irrationality” that global economic uncertainty is supporting demand for mixed workspaces.

IWG, which owns the space and Regus brand, said its adjusted profit grew 6% to $262 million (£194 million), but after its stock fell by investors a year after telling investors, the company expects to end the adjusted profit at the lower end of the previous guide, at $525 million to $565 million to $565 million.

IWG CEO Mark Dixon 25% of £1.9 billion businesshas seen the value of his personal shares fall by £96 million.

“It’s a weird reaction to the stock price. It seems like it’s machine sales…it’s not rational,” he told the Guardian.

IWG has been growing at a rapid pace in recent years after the pandemic completely changed the working patterns and the need for flexible office spaces. But, Dickson said economic uncertainty is now the main driver behind demand.

“It’s a pretty turbulent world there,” he said. “In the UK, it’s a tough economy…Companies need to be flexible, no [capital expenditure] Because you don’t know what the economy has to have.

“It’s similar globally. Even for Americans, it’s very turbulent and people act in a conservative way.”

IWG opened 220,000 rooms in its portfolio in the first half of the year, up 43% from the same period last year. It also announced a new share buyback target of at least $130 million in 2025, with an earlier target of $100 million.

Since the beginning of the year, IWG shares have risen more than 40% before Tuesday’s fall. The stock has been up 19% so far.

Last year, Switzerland-based IWG faced pressure from one of its leading shareholders to list its London stock market. Dixon added that the move is not a current priority at the moment.

“If there is better multiple and more liquidity, we might consider it,” he said.

IWG is one of the largest office space providers in the world. Dixon has been the CEO of the business since 1989 when he struggled to find his own office for renting his business in Brussels.