Manchester United Plan IPO Road Show
Thu 26th Jul 2012 | Clubs Ownership
Manchester United’s decision to delay its proposed Initial Public Offering (IPO) may be due to a rumoured marketing road show planned to raise interest.
The Premier League club’s owners, the Glazer family, had planned to launch the IPO earlier this week but the decision to delay the offering has been attributed to market conditions.
But according to Reuters, sources close to United have said they may now be about to launch a marketing road show to raise interest in the £193m US IPO either on Friday or early next week.
Falls in the Standard & Poor 500 stock market index on Wednesday amid worries about the European debt crisis and earnings, and market volatility has already led to at least one delay.
MUST Chief Executive, Duncan Drasdo, who has been heavily critical of the Glazers’ IPO attempts said: "The Glazers have been forced to pull the New York flotation of Manchester United due to lack of interest at the valuation they were placing on the club.
“That combined with the unattractive dual class share structure meant they couldn't find support in the market at the price they wanted. We expect they will blame market conditions although there's been little change in markets since they filed with the SEC.”
Their attempts to take the club public have run into trouble before when they scrapped plans to list in Hong Kong and Singapore after demand came in weaker than expected. It had originally looked to raise as much as $1 billion in Singapore.
The IPO offering of a dual-class share structure is thought to be the main stumbling block. The Glazers will remain in control of the club with their shares thought to have 10 times the voting power of average investors' shares.
"We now call on the Glazers to come back with a full flotation of Manchester United with a single class of full voting shares,” Drasdo added. “Should they choose to do this, with no strings attached, we would support such a flotation wholeheartedly and encourage the global fan base of Manchester United to seize such an historic opportunity to secure a meaningful fan ownership stake where the priorities of the club are the same as the fans - not absentee owners.”
The company is slated to be listed on the New York Stock Exchange under the ticker "MANU."
Posted by: Aaron Gourley
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