Manchester United raises $233 mn in New York IPO

Elite English soccer club Manchester United has raised approximately $233 million through its initial public offer (IPO) in New York, valuing the company at around $2.3 billion (£1.5 billion).

The club has offered around 16.7 million shares or its 10-per cent stake at a price of $14 per share, which is much lower than the $16-$20 a share range that had been widely anticipated. The valuation of the sports club could have been $3.3 billion at the top end of the range.

Manchester United shares will be listed on the New York Stock Exchange on Friday under the symbol 'MANU.'

Half of the stock will be sold by its controlling shareholder, US billionaire Malcolm Glazer and his family, while the other half is being sold by Manchester United itself. The underwriter has an option to purchase up to 2.5 million additional shares from the shareholder, Manchester United said in a statement.

Glazer's family will maintain about 99 per cent of the voting rights as they will hold class B shares, which are entitled to 10 votes per share, while each class A share being sold at the IPO is entitled to one vote per share.

Last month, the football club said that would seek New York listing through a $100-million IPO, although it did not disclose the price or the number of shares that would be offered. It was expected that the issues size could be revised upwards. (See: Manchester United plans New York IPO)

Glazers purchased the celebrated club in 2005 for £790 million. Although, a Singapore IPO was planned for last August, it was deferred due to jittery stock market conditions.