When flexible workspace provider IWG (IWG) updated the market back in March, it warned of pressure across its global business as countries implemented lockdown measures in response to Covid-19. At the end of May, it revealed that revenue from its more mature estate – which excludes new locations opened in 2019 – rose by 7.6 per cent at constant currencies in the first three months of 2020, to £623m. But this gave way to a 2.9 per cent decline in April and the group is guiding to a tougher second quarter.
In response to the crisis, IWG recently turned to investors and raised £320m. The majority of the proceeds came from institutional investors via a ‘non-pre-emptive placing’. As part of this, chief executive Mark Dixon purchased a little over 38m shares worth £91.3m. He did so via his wholly owned holding company, Estorn Limited, and has maintained his 28.5 per cent stake in IWG. But the group also followed in the footsteps of catering giant Compass, making up to €8m (£7m) of shares available to retail investors through the ‘PrimaryBid’ platform.
Andrew Shepherd-Barron, an analyst at Peel Hunt, called the fundraising “part protective and part opportunistic”. IWG is presenting it as an offensive strategy to take advantage of potential growth opportunities. It believes the need for flexibility and social distancing will spur demand for office space. Meanwhile, struggling rivals could leave scope for acquisitions and to take over distressed assets in the form of leased, services offices.
| Buys | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| Morgan Sindall | David Lowden | 27 May 20 | 4,000 | 1,244 | 49,754 | Purchased by PCA Michele Lowden |
| PZ Cussons | Caroline Silver | 27 May 20 | 12,500 | 175.4 | 21,925 | |
| AJ Bell | Mohamed Tagari | 27 May 20 | 5,229 | 380.4 | 19,891 | |
| IWG | Mark Dixon (ceo) | 28 May 20 | 38,205,384 | 239 | 91,310,868 | |
| Horizon Discovery | Ian Gilham | 28 May 20 | 25,000 | 101 | 25,250 | |
| Horizon Discovery | Grahame Cook | 28 May 20 | 79,850 | 101 | 80,649 | |
| ICG Longbow-Senior | Paul Meader | 29 May 20 | 38,000 | 73 | 27,740 | |
| easyJet | Moya Greene | 29 May 20 | 7,032 | 710.99 | 49,997 | |
| InterContinental Hotels | Arthur de Haast | 29 May 20 | 1,000 | 4,000 | 40,000 | |
| Playtech | Mor Weizer (ceo) | 1 Jun 20 | 19,000 | 278 | 52,820 | |
| Playtech | Fabio Schiavolin | 1 Jun 20 | 50,000 | 287 | 143,000 | |
| Sells | ||||||
| Company | Director/PDMR | Date | No. of shares | Price (p) | Aggregate value (£) | Comments |
| Ten Entertainment | Graham Blackwell | 28 May 20 | 4,070 | 170 | 6,919 | |
| Ten Entertainment | Graham Blackwell | 28 May 20 | 4,383 | 169 | 7,407 | |
| Ten Entertainment | Graham Blackwell | 28 May 20 | 7,219 | 162.1 | 11,702 | |
| Ten Entertainment | Graham Blackwell | 28 May 20 | 22,434 | 161 | 36,119 | |
| Ten Entertainment | Graham Blackwell | 28 May 20 | 4,105 | 160.99 | 6,609 |
