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MUMBAI: After calling off its $1 billion initial public offering
(IPO) in Singapore due to volatile market conditions, well-known
English Premier League (EPL) club Manchester United has filed
for a $100 million IPO with the US Securities and Exchange
Commission (SEC).
It
will become the first UK soccer club to go public in the US
in more than a decade. The club was listed on the London Stock
Exchange (LSE) from 1991 until June 2005.
The
club, which is owned by American Glazer family, said it will
issue Class A and Class B, with the latter controlling most
of the voting rights. The club did not specify the launch
date, stock symbol, price range or size of the IPO.
Manchester
United said they intend to use all the net proceeds of the
issue to reduce debt, which stands at $664 million higher
than the $520 million revenue it earned last year.
"Our
indebtedness could adversely affect our financial health and
competitive position and reduce the availability of our cash
flow to fund the hiring and retention of players and coaching
staff," Manchester United said in its filing.
The
team would become a wholly owned subsidiary of Manchester
United Ltd, a newly formed holding company based in the Cayman
Islands.
"In
the Premier League, recent investment from wealthy team owners
has led to teams with deep financial backing that are able
to acquire top players and coaching staff, which could result
in improved performance from those teams in domestic and European
competitions,” the Manchester United filing said.
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