Manchester United's New York floatation was priced at $14 a share tonight, below the $16 to $20 range marketed to investors.
However, even at the disappointing price of $14 a share the club is still
expected become the most valuable football club in the world, worth about
$2.3bn (£1.5bn). In total 16.7m shares are being issued, raising $233m.
In contrast, Real Madrid is valued at just $1.88bn, according to an annual
ranking by Forbes.
Having ditched a plan to float in Singapore, Manchester United’s initial
public offering in New York has proved controversial because the Glazers,
the US-based family that acquired the club in 2005, will collect more than
$100m of the flotation proceeds. The club’s supporters’ trust has called for
all the money raised to be used to cut the club’s debt of £423m, which stems
from the Glazers’ purchase.
“It’s not the most natural place for Manchester United to list,” said Tim
Jenkinson, a specialist on IPOs at Said Business School in Oxford. “Most
obvious would have been the UK, then possibly Asia. But they do have
tremendous brand loyalty.”
Its global status helped the club secure a record $600m sponsorship deal with
US car maker General Motors last month.
The Glazers hired a bevy of heavyweight banks, including JP Morgan Chase,
Credit Suisse and Deutsche Bank, to pitch the shares to investors in the US,
Europe and Asia.
Despite the club’s sporting success, analysts said investors will have to stomach having no control at the club, that was pipped to the Premier League title by local rival Manchester City last season.
Before its acquisition by the Glazers, Manchester United was listed on the London Stock Exchange.
Despite the club’s sporting success, analysts said investors will have to stomach having no control at the club, that was pipped to the Premier League title by local rival Manchester City last season.
Before its acquisition by the Glazers, Manchester United was listed on the London Stock Exchange.