Manchester United picks New York Stock Exchange to make its market debut

Earlier this year reports said MU may list in Singapore
NEW YORK: Manchester United Ltd
picked the New York Stock Exchange to make its market debut, ending
months of speculation over where the world's best-supported football
club would list.
The former English football champions pulled a
planned $1 billion (637.3 million pounds) listing in Singapore because
of market turmoil. It had earlier eyed a Hong Kong IPO.
Thomson Reuters
publication IFR reported last month that the football club had dropped
its plans for an Asian listing in favour of a U.S. listing.
Manchester
United has a global fan base of 659 million, according to a survey
commissioned by the club and carried out last year by market researcher
Kantar. Almost half of United's supporters were in Asia-Pacific.
"It
remains to be seen how much the football club is going to benefit in
the US where the sport is not very popular ... The perfect place for it
to have listed should have been London," Jay Ritter, a University of
Florida IPO expert told Reuters.
The club, founded in 1878 as Newton Heath LYR Football Club, plays its home games at Old Trafford in Greater Manchester.
The
club's American proprietors, the Glazer family, are well known in the
United States as owners of American football team the Tampa Bay
Buccaneers.
However, they have faced opposition from United fans
after taking over the club in 2005 in a leveraged buyout that left it
saddled with hefty debt repayments.
The club's total debt as on March 31 was 423.3 million pounds, according to the filing.
It intends to use the net proceeds from this offering to repay debt.
"It is going to come down to the valuation. U.S. investors are not going to jump on it right away," Josef Schuster, founder of Chicago-based financial services firm IPOX Schuster LLC.
IPO DETAILS
Manchester
United filed with the U.S. Securities and Exchange Commission on
Tuesday to raise up to $100 million in an initial public offering of
its Class A ordinary shares.
The Glazer family will hold class B
shares, which will have 10 votes each, representing 67 percent of the
voting power of all shareholders, effectively keeping the club's
management within its control.
Jefferies, Credit Suisse, J.P. Morgan, BofA Merrill Lynch and Deutsche Bank Securities are underwriting the IPO, Manchester United said in a preliminary prospectus. This leaves out Morgan Stanley, which was one of the investment banks originally expected to underwrite the Singapore listing.
United,
which has been English league champions a record 19 times and has
featured players such as England's David Beckham and Portugal's
Cristiano Ronaldo, intends to list on the New York Stock Exchange.
The filing did not reveal how many shares it plans to sell or their expected price.
The
amount of money a company says it plans to raise in its first IPO
filings is used to calculate registration fees. The final size of the
IPO could be different. - Reuters