Manchester United Ltd. has filed a registration with the U.S. Security and Exchange Commission (SEC) to offer stock to U.S. investors via an Initial Public Offering (IPO).
Manchester United intends to raise up to USD $100 million from the sale of Class A ordinary stock, which will be listed on the New York Stock Exchange (NYSE). Originally, the club had entertained going on the Singapore stock exchange, but changed its mind and has focused on the NYSE instead. Manchester United is expected to hold the U.S. offering later this summer.
According to the filing, Manchester United has moved the club’s registration to the tax haven of Cayman Islands.
“The principal intention, set out in a US Stock Exchange registration statement, is to sell enough shares to new investors to pay off an as yet unspecified portion of United’s £423m debts, which the Glazers loaded on to the club when they bought it in 2005,” said David Conn, in The Guardian. “To date the Glazers’ takeover has cost United more than £500m in interest, bank charges and fees, after they borrowed £525m to buy the club, then made it responsible for servicing their debts.”