Manchester United to float on Singapore stock exchange

By David Gold

August 16 – Manchester United are set to publicly float up to £610 million ($1 billlion /€690 million) of the club’s shares on the Singapore Stock Exchange by the end of the year, it was revealed today.

The English Premier League champions are onsidering mandates for the initial public offering (IPO) from Morgan Stanley and another bank.

There had been speculation that the club would make an IPO at some point this year in June, when it was suggested that this may be on the Hong Kong Stock Exchange.

Other major brands such as Prada and L’Occitane have floated on the Hong Kong stock exchange, demonstrating the potential of the region’s markets.

Manchester United’s popularity in the Far East makes its stock markets a particularly attractive proposition, and the flotation would enable the Glazer family who own the club to reduce its substantial debts.

When the Glazers bought the club in 2005 it was taken off the London Stock Exchange, and despite continued success on the pitch, fans remain hostile towards the owners.

The main reason for the hostility is the huge debt that the club has had to carry since the takeover, as the Glazers borrowed the £790 million ($1.3 billion/€902 million) required to buy the club by using United as leverage.

Despite their debt, United would be an attractive investment due to the club’s profitability and profile.

Last month Forbes estimated that they were the most valuable sports brand in the world, and the football club’s profitability has continued to increase in recent years, even though much of it has had to be used to pay off the debts accumulated by the owners.

The Manchester United Supporters Trust (MUST) chief executive Duncan Drasdo gave the news a cautious welcome.

“Until we have more detail it is impossible to say with certainty what this will mean for Manchester United or its supporters,” he told insideworldfootball.

“Our aim is to provide the opportunity for mass supporter participation in ownership of their club so this could well present such an opportunity.

“It is quite possible that shares will not be available to ordinary supporters and that MUST will have to provide a mechanism for supporters to buy shares.”

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