Manchester united: Floatation fizzles despite price cut

Manchester United Ltd is the world’s most highly valued sports team.

NEW YORK: Manchester United shares barely treaded water in debut trade in New York on Friday even after underwriters slashed the initial public offering (IPO) price amid doubts about the British football club’s financial promise. The shares bounced along just above the $14 issue price all day in a sign that underwriters were likely supporting them amid strong selling pressure, analysts said. They finally closed at $14, and slipped below to $13.90 in after-hours trade, with trading volume nearly double the 16.7 million shares released in the IPO. It was a disappointing launch especially after the IPO price was cut Thursday from the original plan for $16-20 per share. The exercise pulled in $234 million, significantly below the $300 million sum the debt-ridden club and its owners, who take half of the IPO receipts, had hoped to bring in. It nevertheless left the Cayman-registered Manchester United Ltd the world’s most highly valued sports team, with a market worth of $2.3 billion.

Published in The Express Tribune, August 12^th, 2012.