Manchester United lowers stock flotation value
Manchester United has lowered its share price ahead of the New York stock market flotation
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The growth forecasts are likely to be close to zero.
Friday, 10, Aug 2012 11:18
By Mark Fordham
Manchester United has been forced to cut the value of its imminent share flotation in New York just weeks after stating they would be sold for around $16-$20 (£10-£12).
The football club has now stated that each share will be sold at $14 each.
It is selling shares representing some ten per cent of the club, which - it is hoped - will raise around $233 million that will then help pay off some of the debt accrued by the club when the Glazer family took over.
This lowering of the share price suggests that there wasn't enough interest from buyers in the original listing.
Originally the club was set to be floated in Singapore but it pulled out of this in September, citing the volatility of the stock markets as the chief reason.
Experts believe that the club could still struggle to entice investors even with the lowered price.
"I'm surprised it wasn't more of a discount," said Ken Perkins, an analyst with Morningstar.