Saturday, August 11, 2012

Manchester United IPO, A Success

Manchester United Plc (MANU) is no longer just an English soccer club but it is now among the companies listed in the U.S. stocks exchange after its successful initial public offering yesterday.

The 134-year-old team sold 16.7 million shares yesterday, which is equivalent to 10 percent of the company's stake, at a price of $14 each.

The IPO raised $233.3 million for Manchester United Plc with most investors coming from Americans, according to Vice Chairman Edward Woodward.

"The understanding that U.S. investors have around sports business, given it's the most developed sport market in the world, has been a benefit," Woodward said in a telephone interview after the stock started trading.

After the successful IPO, the team's enterprise value is now pegged at $2.9 billion - which is $1 billion more than the value of Spain's Real Madrid, according to Bloomberg and Forbes data.