Newcastle shoots to top of range
Saturday 22 March 1997
The news came as shares in Charlton Athletic of the First Division collapsed on their first day of trading, heightening fears that the market for football stocks had overheated.
"There are still a lot of institutions out there who are nervous about football," said Paul Deakin of NatWest Markets, Newcastle's sponsoring broker and financial adviser.
But strong demand from Newcastle fans for shares at 135p ensured its retail offer was oversubscribed seven times. To satisfy demand from 8,500 season ticket holders the number of shares available to private investors will be increased from 10 per cent of the offer, or 4 million shares, to 15 per cent.
NatWest indicated that the institutional offer, which closed yesterday, was also substantially oversubscribed. "Our list of top 10 investors reads like a Who's Who of financial institutions in the UK," said Mr Deakin.
However, he admitted some fund managers had shunned the issue because of concerns that some football clubs had become overvalued. These fears were realised yesterday when shares in Charlton Athletic closed at 17p below their issue price at 63p after touching 56p in early dealings.
Existing shareholders, season ticket holders and supporters snapped up around 1.3 million shares priced at 76p. Charlton's institutional placing was also fully subscribed at 80p per share, valuing the club at pounds 17.m.
"It is disappointing," said Ken Ford of Teather & Greenwood, the club's advisers. "But there are buyers out there and we are hopeful of getting back to the issue price before too long."
Shares in other recently floated clubs, including Birmingham City and Sunderland, are also trading at or below their offer price.
Proceeds from the Newcastle float will be used to pay off debts of pounds 21m.The club plans to abandon its St James's Park home for a pounds 90m stadium across the city.
- 1 Michelle Rodriguez: Fast & Furious actor apologises after telling 'minorities' to stop taking on 'white' roles
- 2 The black and blue dress: Makers considering a white and gold version
- 3 This is what it's like to be dead, according to a guy who died for a bit
- 4 PornHub turns masturbation into energy in bid to save the planet
- 5 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...