Manchester United cuts price for US IPO to US$14
NEW YORK (AFP) - Britain's world-renowned football club Manchester United cut the price of its United States (US) share launch on Thursday, slashing the amount it hoped to raise to US$233 million (S$290 million) from US$300 million.
The fabled club, mired in debt since 2005 after a heavily leveraged takeover by Miami-based investors the Glazer family, lowered its price for the 16.7 million shares on offer to US$14 from the originally planned US$16-20 range.
The company gave no reason for cutting the price, but the initial public offering (IPO) has come amid some doubts about the team's ability to boost profits as long as it continues to carry a hefty debt burden.
Investors have also become wary about aggressively priced initial public offerings after the much-promoted Facebook launch soured, with the social networking giant's shares sinking to nearly half of the IPO price just two months after the May 18 issue.