ManU Delays Public Offering On U.S. Market Citing Unstable Economy
ManU has "temporarily paused plans" to launch its $300M initial public offering in the U.S., according to Massoudi, Blitz & Sakoui of the FINANCIAL TIMES. The decision was made because market volatility "has soared in recent days as macroeconomic fears hit share prices." The EPL team had been looking to start its investor roadshow as early as Monday of this week, with "the aim of pricing and listing its shares in early August." However, people familiar with the situation said that ManU and its bankers "are to reconsider when they will begin meeting potential investors later this week." The pause comes as U.S. markets have been "unsettled by further concerns over debt and economic growth in the eurozone." The S&P 500 index has fallen 2% since the start of the week. The Vid index, a "widely monitored measure of implied volatility" on the U.S. market, has risen by more than 23% since Monday. Bankers consider a sudden rise in the Vix index as a "sign of potential risk aversion from investors," making them less likely to take part in new offerings (FINANCIAL TIMES, 7/25). In London, Goodley & Milmo reported thousands of ManU fans who have campaigned against the Glazers' ownership, have "welcomed the prospect of a listing and not only because it would dilute the Glazers' shareholding." The Manchester United Supporters' Trust has said that it would "support the share sell-off if the proceeds were used to pay off debt" (GUARDIAN, 7/25).