English football giant Manchester United has received approval from the Singapore Exchange to list their shares in the city, a source familiar with the matter said Friday.
The initial public offering in Singapore, which reports say could raise $ 1 billion to bring the championship dominant closer to the legions of fans in Southeast Asia, football-crazy area of over half a billion people.
But the club will gauge market sentiment before starting the initial public offering (IPO) due to the uncertainty caused by the crisis in the euro zone debt, said the source, who asked not to be named.
“They have been approved, but the timing is not fixed,” the source told AFP.
“The company does not need money, so they are not eager to list. Basically, they keep a watchful eye on market conditions. ”
Media reports have said could raise U.S. $ 1 billion IPO of 30 percent of its shares, the value of the company at more than $ 3 billion.
Affairs have been classified by the U.S. magazine Forbes earlier this year, the biggest club in the world of sports is $ 1860000000.
For now, the goal of listing on the Singapore Exchange (SGX) later this year, but the source described as a “moving target”.
Fear of contagion from the euro area and the debt the U.S. economy sinks into recession has soured investor confidence and can affect prices for any company planning to build right now, analysts say .
“Market volatility and weaken the feeling would be a major inconvenience for anyone who wants to the list,” said Vishnu Varathane, a Singapore-based economist with Capital Economics consultancy.
“This is not the most ideal time for the list, not a bull market,” he told AFP.
“There’s anxiety and fears that more funds will be withdrawn from the market. The exploitation of new sources of funds could be a challenge and prices could come under pressure. ”
However, the source said the club’s American owners – Glazer family – are likely to opt for a two-tier structure to share – and to vote the shares without voting rights – which can be effectively monitored.
The Straits Times newspaper said that while preferred shares without voting rights, which can be sold at twice the value of the shares.
In addition, holders of such shares must be paid first, before the shareholders holding shares in the event of a bankruptcy, the newspaper said.
Despite the success of the club on the field for the Glazer family has been a contentious presence at Old Trafford since his takeover in 2005-an agreement that was heavily dependent on debt financing.
Asia is home to 190 million of the approximately 330 million followers around the world, united, and most of the sponsors of the club are based in the region, or produce a good part of the revenue from it.
States had already planned to list in Hong Kong and neck of the club was a coup for Singapore, which was in competition with the southern city of China as a regional financial center.
SGX chief executive Magnus Bocker says Singapore, located in the heart of Southeast Asia, is a distinct capital market from Hong Kong, which offers a direct springboard into China.