Glazers gain £75m in Manchester United stock market float
Friday 10 August 2012
Related articles
The American owners of Manchester United pocketed around £75 million today as shares in the football club were publicly traded for the first time in seven years.
Some 16.6 million shares, equal to 10 per cent of the club, were floated on the New York Stock Exchange to great fanfare as members of the Glazer family rang the opening bell.
The 134-year-old club offered shares for 14 US dollars (£9) a piece - giving United a market value of £1.5 billion - but there was little price movement in early trade.
The offering was substantially lower than the 16 to 20 US dollars originally proposed by its advisers - which would have valued the club at £2.1 billion at the top end.
The flotation will raise around £150 million with roughly half the proceeds going to the Glazers, who bought the club in 2005 for £800 million, while the remaining proceeds will be used to pay down some of the Red Devils' £423 million debt pile.
As trading started, United's co-chairmen Avram and Joel Glazer and chief executive David Gill applauded from the stock exchange's balcony, which was adorned with the club's emblem, while New York traders wore the club's trademark red home kit.
The lower flotation price comes after the Glazer family, which also owns the Tampa Bay Buccaneers American football team, previously failed to garner sufficient support to sell shares on exchanges in Hong Kong and Singapore.
However, United, which claims to have a global fan base of about 660 million and has won a record 19 league titles, is still one of the world's most valuable sports teams.
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 initial public offering would reportedly result in investors owning 42% of the shares available but only carrying voting rights of 1.3%.
Trading under the stock-market ticker Manu, shares rose but then pulled back to stand still at the 14 US dollar mark.
Shavaz Dhalla, financial trader at Spreadex, said: "After opening positively, possibly caused by smaller retail investors looking to pick up a token share, the club's share price slowly began to retrace and drop early gains.
"Clearly, investors who are actually looking for a return as well as a shareholder voting right are steering clear."
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."
PA
Latest in Sport
Sport blogs
iBet: Look To The Lady In The Prince Of Wales
The Prince of Wales Stakes today is regarded by many as the No1 race of the Royal Ascot meeting and ...
by Gareth Purnell
19 June 2013 02:01 AM
iBet: Favourites have a good record in the Coventry stakes
Today’s St James Palace looks a cracker and there has been sustained money for Dawn Approach since t...
by Gareth Purnell
18 June 2013 02:01 AM
Newcastle don’t need a football director – they need a new medical team after finishing bottom of the injury league
Newcastle United have shocked their fans by appointing Joe Kinnear as director of football but new f...
by Alex Miller
17 June 2013 04:39 PM
-
ACT Brumbies v British and Irish Lions - player ratings
-
Liverpool close in on £6m Spanish winger Luis Alberto
-
In pictures: Royal Ascot 2013 - Opening day
-
Exclusive: Cristiano Ronaldo advised to stay at Real Madrid for further 18 months before making possible switch to Manchester United
-
Italy Under-21s 2 Spain Under-21s 4 match report: Thiago Alcantara's hat-trick seals European Championship for Spanish youngsters
- 1 Diary of Second World War German teenager reveals young lives untroubled by Nazi Holocaust in wartime Berlin
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Uri Geller psychic spy? The spoon-bender's secret life as a Mossad and CIA agent revealed
- 4 Viral video straps colt .45 handgun to a home-use drone
- 5 Vice pulls 'breathtakingly tasteless' fashion shoot glorifying the suicides of famous female authors from Sylvia Plath to Virginia Woolf
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
How will you make today delicious?
Tell us how you plan to make today delicious and you could win a £50 M&S gift card.
Learn a new language
Add another string to your bow with Rosetta Stone, whether it's Spanish, Italian or Mandarin...
Making reading fun for kids
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Introducing the 'Get Reading' campaign
Get the latest on The Evening Standard's campaign to get London's children reading.
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Day In a Page
First night: The Cripple of Inishmaan
Scandi-geeks descend on Nordicana for fan-convention
Female aristocrats battle to inherit the title



Comments