Manchester United files for IPO in US, Formula 1 IPO still on delay image

Manchester United has picked the New York Stock Exchange to hold an initial public offering of stock and become a listed company on the New York Stock Exchange.

This comes after a $1 billion offering on the Singapore stock market was pursued last year, but the plans were halted due to volatile global markets. Formula 1 also said the group was looking to launch its initial public offering (IPO) in Singapore, but the deal was delayed because of market uncertainty.

The club, owned by the Glazer family filed with the Securities and Exchange Commission on Tuesday to raise up to $100 million in an initial public offering of its Class A ordinary shares in New York.

“We intend to use all of our net proceeds from this offering to reduce our indebtedness,” the team’s filing said.

Under the reorganization, the team would become a wholly owned subsidiary of Manchester United Ltd., a newly formed holding company based in the Cayman Islands.
The company will not pay a dividend on listed shares “in the foreseeable future”, according to the IPO filing.

“The U.S. market has an ability to provide cash,” said Michael Cuggino, who manages about $17 billion at San Francisco- based Pacific Heights Asset Management.

“They’re Premier League soccer, so there’s an enterprise value there.”

United, one of the most successful teams in professional soccer, would be one of the first sports teams to go public in the U.S. in more than a decade. The last team to do so was the Cleveland Indians Baseball Co., which launched in 1998, according to data tracker Dealogic, and was later taken private.

United reported profits before tax of £15.7m in the nine months to March 31, up 32 per cent compared with the same period a year ago. Net revenues were £245.8m for the period, or 6.1 per cent higher than the year before.