IWG Plc Chief Executive Officer Mark Dixon sold more than 10 per cent of his stake in the world’s biggest operator of serviced offices to pay off a personal loan, sending the stock to its biggest decline in almost two years.

Dixon sold 35 million shares in the WeWork rival for £68.5 million (US$87 million) to unwind a share pledge arrangement he finalized less than six months ago to secure undisclosed borrowings from Deutsche Bank AG, according to a regulatory filing Wednesday.

International Workplace Group’s shares fell as much as 11 per cent Wednesday in London, the most intraday since August 2022. 

A Deutsche Bank spokeswoman declined to comment, while a representative for Dixon didn’t immediately respond to a request for comment. A British native, Dixon still owns a stake worth more than $600 million in the company he founded more than three decades ago.

Dixon, 64, pledged most of his stake in December as collateral for the loan, making the move after the company’s stock had rebounded from a slump earlier in the year.

The Zug, Switzerland-based company’s shares had climbed 20 per cent through Tuesday after Dixon disclosed the share pledge, making it unlikely he faced a margin call.

Borrowing against the value of shares, as compared to selling them, offers tax advantages since only realized gains are subject to a levy. Several members of the world’s super-rich, including Lululemon Athletica Inc. founder Chip Wilson and Kering SA founder François Pinault, currently have share pledge arrangements in place with banks.

WeWork founder Adam Neumann also committed shares to secure a credit line of as much as $500 million from banks including JPMorgan Chase & Co. before he was ousted as CEO and Softbank Group Corp. stepped in to cover that liability.

Dixon founded the company — known until earlier this month as IWG — in 1989 after previously working as a baker, burger flipper and encyclopedia seller. His other major investments include MDCV, an owner of vineyards encompassing more than 1,000 acres (405 hectares) that aims to become one of Britain’s biggest wine producers.

Dixon has previously offloaded more than $300 million of IWG stock in the past decade but repeatedly boosted his stake in the company he leads during the pandemic. He now owns about 25% of outstanding shares following his latest sale.