SINGAPORE: English Premier League champions Manchester United have filed an application with the Singapore stock exchange for a public listing, a source close to the deal said yesterday.
The Red Devils, the Premiership title-holders and three-time champions of Europe, submitted their application with the Singapore Exchange (SGX) “last week” the source told AFP on condition of anonymity.
The SGX will study the application and if approved will issue the club an “eligibility to list” letter, after which United can lodge its prospectus with the Monetary Authority of Singapore, the source added.
Although they are in debt, United were ranked by business magazine Forbes earlier this year as the world’s most valuable football club with a value of US$1.86bil.
United plan to issue their initial public offering (IPO) in the fourth quarter, said the source.
Press reports said United aim to generate US$1bil with the IPO of 30% of the club’s shares.
Media estimates of US$1bil for 30% of the club’s shares indicates the company is worth more than US$3bil in total, far higher than other estimates such as that given by Forbes.
One source with knowledge of the IPO plan said on Wednesday the club chose Asia over London for the listing because the region accounts for 190 million out of the estimated 330 million United followers worldwide.
In addition, most of the club’s sponsors are also based in Asia or generate a large part of revenue from the region, which includes China, India, Japan, South Korea and the 10 members of the Association of Southeast Asian Nations (ASEAN).
“Asia has been integral to the club from a fan point of view and also from a commercial point of view,” the source said on Wednesday.
The Straits Times newspaper said on Wednesday that Singapore’s state investment agency Temasek Holdings is being eyed as a cornerstone investor.
The club, once listed on the London Stock Exchange as Manchester United PLC, had reportedly first planned to list in Hong Kong.
Singapore’s Business Times said the business is currently £717mil (US$1.18bil) in the red.
“It is debt-ridden but it’s not loss-making. On an operational level, it is profitable,” the source said on Wednesday to clarify the club’s financial position. — AFP
No comments:
Post a Comment