Loftus Road valued at pounds 28.8m here yes

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The Independent Online
Loftus Road, the newly formed company that owns Queens Park Rangers football club and Wasps rugby club, will be valued at pounds 28.8m when it comes to the Alternative Investment Market next month.

More than 17 million shares were placed with institutions yesterday priced at 72p. However, season ticket holders, members and employees of both QPR and Wasps qualify for a discount. They can buy shares at 67p. The general public can also apply for shares, though they do not qualify for the lower price.

Applications must be received by 8 November. The placed shares will start trading tomorrow while dealings in the offer shares are expected to start on 18 November.

Loftus Road, which was formed by Chrysalis Records founder Chris Wright, hopes to raise around pounds 12m from the share issue. The proceeds will be used to repay borrowings, pay competitive wages, buy new players and make improvements to the clubs' facilities.

The company said it had two principal objectives: "To achieve the promotion of QPR back to the Premier League after which [financial] results should be improved considerably; and to translate Wasps' record in the first class amateur game into the new professional era."

The company said that excluding profits or losses made on the transfer of players, Loftus Road would record a loss in the year to May 1997. It also said that no profit would be recorded in the year to May 1998 unless QPR achieved promotion to the Premier League. The company said yesterday that it hoped to keep Trevor Sinclair, QPR's pounds 5m rated winger, who has submitted a transfer request.

Loftus Road said the combining of QPR and Wasps should lead to economies of scale with the sharing of administrative functions. Sponsorship, merchandising and advertising prospects should also be boosted by the pooling of resources.