Man Utd shares debut in New York
Published: 10th Aug 2012 15:45:16
Shares in Manchester United have begun trading on the New York Stock Exchange (NYSE).
The shares debuted at $14.05, up from the float price of $14, opening trading with the stockmarket ticker MANU.
On Thursday, Manchester United was forced to cut the value of the shares to $14 each from $16-$20.
The shares on sale represent 10% of the club, which it hopes will raise $233m (£150m) to pay off some debt - well below the $333m initially hoped for.
As expected, interest in the shares was subdued, as many analysts had warned that the offer price overvalued the club.
The NYSE celebrated the share launch by laying astroturf between the bell and the club's market-maker.
Manchester United executives, including members of the controlling Glazer family, rang the opening bell on the exchange, while some traders sported the club's shirt.
The shares do not pay a dividend to investors, and it is not clear exactly how much of the money raised will go towards paying down the club's debts and how much will go to the Glazers.
A number of analysts have warned the shares offer little value to investors.
"Maybe a few hedge funds will take a small punt of $5m-$10m, which if it goes bad, they can easily write off, Mike Jarman, chief market strategist for H20 Markets - a former professional footballer and a Manchester United fan himself, told the BBC.
He dubbed the sale "son of Facebook" - referring to the social media company's recent stockmarket floatation.
Facebook shares opened trading in May with a guide price of $38, but they are currently selling at around $21.
"Son of Facebook? I wish it was - but it's even worse than that. It's priced to fail," said Mr Jarman.
The club had tried unsuccessfully to list the shares in Singapore, but a reported lack of interest led it to pull the sale.
It then tried to list in London, before confirming that it would list in New York.
Despite the scepticism voiced by many analysts, the club itself maintains it has strong financials.
Its commercial revenue grew from £66m in 2009 to £103m in 2011, thanks to sponsorship and merchandising deals.
It made a profit of £13m on continuing operations in 2011. It estimates that it will have made profits of £23m in 2012, but this includes a tax credit of almost £30m.
Without the credit the club would have made a loss, it said.
The Old Trafford club said it intended to increase revenue and profits in the coming years from sponsorship deals, sales of Manchester United branded products, broadcasting rights and improving its new media and mobile offerings.
At 13:04:45 in EnglandPark wardens and government workers are being given powers to police dog-fouling in Jersey.
At 12:58:08 in ScotlandAn independent Scotland would consider introducing a minimum wage that would rise in line with the cost of living, the SNP has said.
At 12:56:41 in Northern IrelandThe Northern Ireland Ambulance Service (NIAS) is reviewing its operations after staff shortages led to delays in its 999 response times at the weekend.
At 12:56:20 in ScotlandScottish Water has completed a £1.9m project to minimise the risk of flooding in the north west of Glasgow.
At 12:54:23 in SportTeam Wales captain Aled Sion Davies admits he was disappointed to have won only a Commonwealth Games silver in the F42/F44 discus final.
At 12:49:31 in EnglandTwo of the largest healthcare providers in Cornwall could merge under cost saving plans.
At 12:47:22 in EnglandThe death of a biker who crashed through glass on Ipswich waterfront has been referred to the Independent Police Complaints Commission.
At 12:46:04 in ScotlandA weightlifter competing at the Glasgow 2014 Commonwealth Games is due to appear in court charged with sexually assaulting a man.
At 12:45:45 in SportOldham have had to cancel a planned photocall - because they have no strip.
At 12:44:43 in EnglandA man has admitted stealing £300,000 from the armed forces veterans' charity Help for Heroes.
Harvard CitationBBC News, 2012. Man Utd shares debut in New York [Online] (Updated 10th Aug 2012)
Available at: http://www.ukwirednews.com/news/1445586/Man-Utd-shares-debut-in-New-York [Accessed 28th Jul 2014]
News In Other Categories
Arcade machines kept in the UK Computer Museum are being restored after enthusiasts answered a plea for help.
Park wardens and government workers are being given powers to police dog-fouling in Jersey.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
Emirates Airline will stop flying over Iraq to protect its passengers from the threat of Islamic militants on the ground, according to reports.
Commonwealth Games backers are investigating how a poster declaring "Proud to support Team England" appeared at a bus shelter in Wales.
Top Gear's Burma Special in which Jeremy Clarkson used a racial slur broke broadcasting rules, Ofcom has said.