Market jitters explain Manchester United's New York flotation delay

 

Manchester United appear to be planning an imminent launch of the marketing roadshow for their proposed $300m (£193m) New York flotation, despite the apparent postponement of the move designed to reduce the club's crippling debts.

Sources suggested yesterday that the roadshow, a vital component of the drive to make the United States initial public offering (IPO) successful, may begin today or possibly early next week and that the offering may be priced in three weeks.

But the situation is fluid and jitters in the market showed no sign of receding yesterday, providing more evidence for why the float is understood to have been delayed. The S&P 500 index fell for a fourth day on Wednesday, amid worries about the European debt crisis and earnings,

The Glazer family announced earlier this month that they were planning to list United on the New York Stock Exchange, in what was a significant admission that the club's £423m debt is hampering their ability to compete against the best sides in Europe – and to cope with the wealth of owners such as Sheikh Mansour bin Zayed al-Nahyan at Manchester City. But United's owners have been forced to reassess the New York float, having already abandon ideas to list the company's shares via an IPO in Singapore.

United could not offer The Independent any comment on the situation last night, owing to US regulatory restrictions.

There have been conflicting reports of when United's shares might begin trading. Some sources had thought it was to have been early next week, though Reuters yesterday quoted a source suggesting it was to have been this week, before the delay. If United do list in the week commencing 13 August, they will face the traditionally quiet period of the US public holidays, before Wall Street tends to return to normality in early September.

Morgan Stanley, which was one of the underwriters for the offering planned in Singapore, dropped out of the syndicate for the US IPO as a result of concerns that the valuation the team was seeking was not realistic, sources have said. Now, Jefferies Group is leading the syndicate, which also includes Credit Suisse, JP Morgan Chase, Bank of America Merrill Lynch and Deutsche Bank.

The IPO would bring in two classes of shares, leaving the Glazers in control and requiring a new Manchester United company to be based in the Cayman Islands. The Manchester United Supporters' Trust (Must) has pointed to the dual class share structure as the reason for the apparent postponement and called on the Glazers "to come back with a full flotation of Manchester United with a single class of full voting shares." Must's chief executive, Duncan Drasdo, said: "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 a historic opportunity to secure a meaningful fan ownership stake."

Suggested Topics
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate