Shared office provider IWG is straining a jam-tomorrow promise. Shares in the 3 billion pound WeWork rival plummeted 15% on Monday morning after Chief Executive Mark Dixon warned https://otp.tools.investis.com/clients/uk/iwg_plc/rns/regulatory-story.aspx?cid=1012&newsid=1481535&culture=en-GB that underlying EBITDA this year will be “well below” last year’s pandemic-afflicted levels. Continuing lockdowns are keeping some offices closed while the spread of highly contagious Covid-19 variants has cast doubt on the UK’s reopening plans.
The gloomy forecast is bad news for WeWork’s stock market debut. The New York-based shared office provider agreed in March to go public in a deal with blank-cheque firm BowX Acquisition Corp that values it at $9 billion. But IWG’s revelation of weak occupancy suggests shared offices are not yet benefitting from changes to working models. In fact, more traditional office landlords like British Land are faring better. The 5 billion pound office owner’s shares are down 12% since March last year; IWG is now down 30%.