Manchester United forced to cut share price ahead of flotation
London: Manchester United has been forced to reduce the value of its impending share flotation at the New York Stock Exchange (NYSE).
The soccer club said it would sell shares at 14 dollars each, below the 16-20 dollar range that it had announced earlier, which suggests that it could not find buyers at those higher prices.
According to the BBC, billionaire US sports investors, the Glazer families, who have controlled businesses at United since 2005, are selling shares representing 10 percent of the club, and are now expecting to raise 233 million dollars, below the 333 million dollars they had hoped for earlier.
It is believed that half the proceeds of the sale will go towards paying down some of Manchester United’s 437 million pound debt, while the other half will go directly to the Glazers.
The shares will begin trading in New York on Friday under the ticker name Manu, the report said.