| Man.U. picks NYSE for $100m US public issue |
BANGALORE Manchester United has picked the New York Stock Exchange to make its stock market debut, ending months of speculation over where the world’s best-supported football club would list.
After first eyeing a Hong Kong IPO, the former English Premier League champions had planned a $1 billion (638.1 billion pounds) listing in Singapore in the second half of last year before putting plans on hold because of market turmoil.
The US-owned club filed with the Securities and Exchange Commission on Tuesday to raise up to $100 million in an initial public offering of its Class A ordinary shares in New York.
In the US, the amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
The company filing for a much lower amount than $1 billion originally expected does not come as much of a surprise, said Josef Schuster, founder of Chicago-based financial services firm IPOX Schuster.
“The smaller the float, the higher the relative valuation can be...This may just be a strategy initially to make it appear like a low float IPO,” Schuster said. “Traders may believe if the deal is very low, then the company can pop at the opening.”
Manchester United has a global fan base of 659 million, according to a survey commissioned by the club and carried out last year by market researcher Kantar. Almost half of United’s supporters were in the Asia-Pacific region.
Reuters
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