United stock flotation kicks off

United stock flotation kicks off

Manchester United will kick off their stock market flotation today in a move which could value the club at more than £2bn (€2.54bn).

The club, bought by the Glazer family in 2005 for about £800m (€1.016bn), will offer 16.7m shares, equal to a 10% stake, which are set to price later at between £10-12 (€13-15) before listing on the New York Stock Exchange on Friday.

United, who claim to have a global fanbase of about 660m and have won a record 19 English league titles, would be valued at £2.1bn (€2.67bn) at the top range, making it one of the world’s most valuable sports teams.

The US-based Glazer family, which is set to make about £90m (€114.36) from the flotation, failed to garner sufficient demand in previous efforts to sell shares on exchanges in Hong Kong and Singapore.

Analysts at data provider Morningstar told the Financial Times that £6 (€7.62) a share would be a fair value, adding: “Shares could trade at a significant premium to our fair value estimate if the market values the soccer team in line with other successful sports franchises.”

The remaining proceeds raised in the initial public offering (IPO) will be used to pay down some of the 134-year-old club’s debt, which was last reported to be around £423m (€537.32m).

Although the listing has been planned for some time, the Glazer family originally claimed all the proceeds would go towards United’s debt, angering fans.

A successful IPO would reportedly result in investors owning 42% of the shares available but only carrying voting rights of 1.3%.

Earlier this month, a leading Manchester United fans’ group called for a boycott of the club’s expanding portfolio of sponsors in protest at the planned flotation.

A statement from the Manchester United Supporters Trust (MUST) read: “The Manchester United Supporters Trust has today called for a worldwide boycott of Manchester United sponsors’ products, with support across the UK, Europe, Asia and the US.

“The boycott strategy is intended to send a loud and clear message to the Glazer family and club sponsors that, without the support and purchasing power of the fans, the global strength of the Manchester United brand doesn’t actually exist.”

MUST have tried such tactics before during the Glazer regime, although it has not prevented the Red Devils’ territory-specific approach allowing them to become the first club to smash through the annual £100m (€127.02m) barrier for commercial revenue alone.

More in this Section

Shares in insurance firms hit hardShares in insurance firms hit hard

Euro falls as finance ministers reach impasse on shouldering huge Covid-19 burdenEuro falls as finance ministers reach impasse on shouldering huge Covid-19 burden

Further Covid-19 business supports include new loans at reduced interest costsFurther Covid-19 business supports include new loans at reduced interest costs

‘Business Post’ joins media organisations forced to cut staff pay‘Business Post’ joins media organisations forced to cut staff pay


Lifestyle

Junior Cert and Leaving Cert students mustn’t be forced to go through the motions with state exams, and we need creative thinking to find alternatives fast, writes mother and educator Ellie O’Byrne.Policy fail? Insistence that state exams go ahead in June is glib and ignorant

Yes, we all need to stay at home but that doesn't mean your children have to be bored, says Michelle McGlynnWorld of wonder: What to do with the children outdoors

Over the next three weeks, I am going to outline how you can support yourself and your family over this period of lockdown, writes Richard Hogan.Learning Points: Keeping children on a healthy and happy regime

As we are settling into our new routines of self isolation, staying at home and home schooling it feels that a whole new set of pressures is coming down the tracks.Mum's The Word: Pressure to be productive in a world of online classes

More From The Irish Examiner