Man U said to be raising US$1b in Q4; with Credit Suisse hired as book runner
By LEE U-WEN 17 August 2011
Manchester United are planning to raise about US$1 billion from an initial public offering in Singapore later this year in a move that could wipe out most of its massive debt in one fell swoop.
International Financing Review (IFR), citing sources who claim to have direct knowledge of the process, reported that the reigning English Premier League champions have chosen Singapore as a listing venue for the IPO launch sometime in the fourth quarter.
People close to the issue told IFR that Manchester United had already appointed Credit Suisse as the sole global coordinator and bookrunner for the transaction.
The report went on to say that Morgan Stanley, along with one other bank, 'is close to the mandate but nothing is finalised as yet and the group could expand to include other banks'.
The timing of Manchester United's IPO would come ahead of new regulations that make it mandatory that European clubs must break even from the start of the 2013/14 season or risk being expelled from European club competitions.
The landmark IPO of such a globalised brand, if successful, would be a major coup for the Singapore Exchange, which is keen to position itself as a top destination for international listings in an effort to compete with Hong Kong.
In June this year, Prada raised US$2.15 billion from its IPO in Hong Kong, while Samsonite International - the world's largest luggage maker - raised the size of its new Hong Kong IPO to nearly US$1.3 billion last month.
Speculation was rife earlier this year that Manchester United - nicknamed the Red Devils - were planning to list on the Hong Kong stock exchange.
However, in an interview with The Business Times last month, Manchester United chief executive officer David Gill - who was in Singapore for a private holiday - said that the club had 'never been up for sale' even as it received frequent approaches by different groups. He had reiterated then that the American owners, the Glazer family, were long-term investors.
The club was previously listed on the London stock exchange, but was delisted in 2005 when the Glazers bought the 19-time English league champions for £790 million (S$1.56 billion) in a leveraged buyout.
According to latest figures, Manchester United are currently £717 million in debt, with about £460 million in interest, fees and charges since the Glazers came on board. Forbes magazine recently estimated that Manchester United were worth around US$1.8 billion.
Many fans have criticised the Glazers for burdening the club with debt in order to fund their purchase. Earlier this month, the Sunday Mirror reported that the Glazers were looking to sell as much as 25 per cent in an offering.
One Singaporean who could well play a pivotal role in Manchester United's possible IPO is former 'remisier king' Peter Lim, one of the country's richest people who is also an ardent supporter of the club.
Mr Lim met Mr Gill for a casual dinner when the latter was in Singapore with his family. Mr Lim also helped bring former United players Gary Neville and Edwin van der Sar, as well as current star Nani, to Singapore to promote his $10 million Peter Lim Scholarship for young athletes.
Mr Lim - who made headlines last October after tabling a £320 million bid for Manchester United's rivals, Liverpool - could not be reached for comment yesterday on the planned IPO launch.
Manchester United's turnover in the three months ended March 31 this year firmed one per cent year-on-year to £75.2 million, led by a surge in commercial revenue.
The 133-year-old club has a fan base of some 190 million across Asia, nearly two-thirds of its total of 300 million supporters worldwide. Mr Gill had said in the BT interview that he recognised the club's huge support in Singapore and that it was important to expand its presence in this part of the world.
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Red Devils may erase debt with Singapore IPO
Man U said to be raising US$1b in Q4; with Credit Suisse hired as book runner
By LEE U-WEN
17 August 2011
Manchester United are planning to raise about US$1 billion from an initial public offering in Singapore later this year in a move that could wipe out most of its massive debt in one fell swoop.
International Financing Review (IFR), citing sources who claim to have direct knowledge of the process, reported that the reigning English Premier League champions have chosen Singapore as a listing venue for the IPO launch sometime in the fourth quarter.
People close to the issue told IFR that Manchester United had already appointed Credit Suisse as the sole global coordinator and bookrunner for the transaction.
The report went on to say that Morgan Stanley, along with one other bank, 'is close to the mandate but nothing is finalised as yet and the group could expand to include other banks'.
The timing of Manchester United's IPO would come ahead of new regulations that make it mandatory that European clubs must break even from the start of the 2013/14 season or risk being expelled from European club competitions.
The landmark IPO of such a globalised brand, if successful, would be a major coup for the Singapore Exchange, which is keen to position itself as a top destination for international listings in an effort to compete with Hong Kong.
In June this year, Prada raised US$2.15 billion from its IPO in Hong Kong, while Samsonite International - the world's largest luggage maker - raised the size of its new Hong Kong IPO to nearly US$1.3 billion last month.
Speculation was rife earlier this year that Manchester United - nicknamed the Red Devils - were planning to list on the Hong Kong stock exchange.
However, in an interview with The Business Times last month, Manchester United chief executive officer David Gill - who was in Singapore for a private holiday - said that the club had 'never been up for sale' even as it received frequent approaches by different groups. He had reiterated then that the American owners, the Glazer family, were long-term investors.
The club was previously listed on the London stock exchange, but was delisted in 2005 when the Glazers bought the 19-time English league champions for £790 million (S$1.56 billion) in a leveraged buyout.
According to latest figures, Manchester United are currently £717 million in debt, with about £460 million in interest, fees and charges since the Glazers came on board. Forbes magazine recently estimated that Manchester United were worth around US$1.8 billion.
Many fans have criticised the Glazers for burdening the club with debt in order to fund their purchase. Earlier this month, the Sunday Mirror reported that the Glazers were looking to sell as much as 25 per cent in an offering.
One Singaporean who could well play a pivotal role in Manchester United's possible IPO is former 'remisier king' Peter Lim, one of the country's richest people who is also an ardent supporter of the club.
Mr Lim met Mr Gill for a casual dinner when the latter was in Singapore with his family. Mr Lim also helped bring former United players Gary Neville and Edwin van der Sar, as well as current star Nani, to Singapore to promote his $10 million Peter Lim Scholarship for young athletes.
Mr Lim - who made headlines last October after tabling a £320 million bid for Manchester United's rivals, Liverpool - could not be reached for comment yesterday on the planned IPO launch.
Manchester United's turnover in the three months ended March 31 this year firmed one per cent year-on-year to £75.2 million, led by a surge in commercial revenue.
The 133-year-old club has a fan base of some 190 million across Asia, nearly two-thirds of its total of 300 million supporters worldwide. Mr Gill had said in the BT interview that he recognised the club's huge support in Singapore and that it was important to expand its presence in this part of the world.
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