Manchester United IPO

Manchester United IPO

Postby iam802 » Wed Aug 17, 2011 10:32 am

Manchester United Said to Plan $1B Singapore IPO

http://www.bloomberg.com/news/2011-08-1 ... apore.html

--
I think most important is the following para:

“They are betting they will get a higher valuation in Asia based on smoke and mirrors rather than facts,” said Stephen Schechter, chief executive officer of investment bank Schechter & Co. in London. “I think it’s worth probably half of what they’re looking for.”
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 6353
Joined: Wed May 07, 2008 1:14 am

Re: Manchester United IPO

Postby Aspellian » Fri Aug 19, 2011 12:53 am

Wow - i definitely will buy 1 lot of Man U (after price corrected) and be a lifetime shareholder - so that I can attend their AGMs! Maybe goodie bags will have a free soccer ball - or even get to see Man U players. This is so exciting! Lifted the gloom off the market recently (in my case only - cos i am a Man Utd fan since 1992! :lol: )

Manchester United Goes East
The soccer club ditches London for Singapore's frothier financial shores.

The financial world's center of gravity is shifting east. That's one lesson in this week's news that Manchester United is planning to list shares on Singapore's stock exchange. The English soccer club, which was taken private in 2005 after being listed in London for 15 years, is looking to raise $1 billion in an initial public offering before the year's end.

It's a major score for Singapore's exchange, which has jousted with Hong Kong's in the last few years for the title of liveliest destination for new public companies. But it's an equally significant blow to the once-healthy IPO markets of the U.S. and Europe. Where once a listing in New York or London was a badge of honor, today overregulation in the West has made it a handicap.

That said, it shouldn't be assumed that Asia is the next-best choice in every case. It's true that a growing portion of Man U's fans today are in Asia, and that a Singapore IPO would help monetize that enthusiasm. Much of Singapore's investor base is retail, which means that the people cheering Man U from the stands are more likely to be the people in a position to buy the club's stock.

Yet recent examples suggest that name recognition in Asian consumer markets is no guarantee of success in Asian capital markets. Italian fashion house Prada and American luggage-maker Samsonite had major IPOs in Hong Kong earlier this year, hoping to cash in on China's new appetite for luxury. Prada's shares were initially priced at some 27 times forecasted earnings—a far higher multiple than would have been sought in Europe. The share price eventually cooled before the initial offering, but shares still found only a middling reception when they hit the market. Shares in Samsonite, similarly hyped before the IPO, tumbled 7.7% on their debut and have since mostly hobbled along.

Neither of those companies has Man U's obvious flaws. The Glazer family, which owns the club, is looking at some $1 billion in net debt. Soccer clubs are notoriously good at losing money. Man U is by some measures the world's most popular club and still it reported a $178 million loss in the year ending June 2010. A cynic would say that the Glazers, like Prada and Samsonite before them, are looking to float shares in Asia because Asia's are the only markets where investors are excitable enough to throw money at shiny enterprises with dodgy bottom lines.

Fans may judge this week's decision even before its financial soundness comes to light, though. The Glazers, who are American, have not been uncontroversial owners since they bought the club in 2005. Supporters in Britain bellyached at the time about foreigners who knew nothing about the beautiful game running their beloved team into the ground, both financially and on the pitch. That didn't happen on the pitch, and the decision to fund Old Trafford with capital from Southeast Asia is another cold splash of capitalist reality—a reminder that no country or financial system can take its luster for granted.

Source: WSJ

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
User avatar
Aspellian
Boss
 
Posts: 1552
Joined: Fri May 23, 2008 8:53 am

Re: Manchester United IPO

Postby Musicwhiz » Fri Aug 19, 2011 1:09 am

I was never a fan of soccer haha! Will be watching this one closely to see its financials - I think most people might find it offensive as to how much some of the players are being paid. Wayne Rooney is one famous example - their daily pay can buy a few cars even in Singapore I think? Hahaha!
Please visit my value investing blog at http://sgmusicwhiz.blogspot.com
User avatar
Musicwhiz
Boss' Right Hand Person
 
Posts: 1257
Joined: Sat May 17, 2008 2:02 am

Re: Manchester United IPO

Postby kennynah » Fri Aug 19, 2011 1:55 am

no single soccer club stays as king forever.... although MU has been topping the english premier league for a long time, so did other clubs, like nottingham forest, who even won the champions league a few times in their heydays...but look at where they are now... bottom of the heap in 2-3rd division...

alex ferguson have been instrumental in steering MU to where it is...but he is a very old man... and no man lives forever...

i won't even think of investing in a shell company...who makes money from retail businesses..which is attractive for so long that they keep winning trophies...but when they don't, jalan besar shops may not even be interested in carrying the fake jerseys in time...
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 16005
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: Manchester United IPO

Postby winston » Sat Aug 20, 2011 9:12 am

TOL:-

Why choose Singapore over HK ?

Isnt the HK market more liquid ? Every single branded company has chosen HK eg. Prada, AIA, L'Occitane etc.

Or they think that Singaporeans are quite stupid and would buy at their high valuation ?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118541
Joined: Wed May 07, 2008 9:28 am

Re: Manchester United IPO

Postby Poles » Sat Aug 20, 2011 9:24 am

winston wrote:TOL:-


Or they think that Singaporeans are quite stupid and would buy at their high valuation ?


they are targetting Indo/Malaysians/Thais/Veits & etc.....geograpic proximity....more IMTV visit SGP more often than Hong Kong...
User avatar
Poles
Boss' Left Hand Person
 
Posts: 594
Joined: Fri Jun 20, 2008 12:33 am

Re: Manchester United IPO

Postby winston » Sat Aug 20, 2011 9:44 am

I see, they are targeting the stupid Indonesians, Malaysians, Thais, Vietnamese ...
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118541
Joined: Wed May 07, 2008 9:28 am

Re: Manchester United IPO

Postby Poles » Sat Aug 20, 2011 9:48 am

football fans are easily bought over...look at the price of a jersey...just because of the words & logo printed on...
as you see in stadiums....the herd volume is there....
SGP numbers cannot beat these countries...
User avatar
Poles
Boss' Left Hand Person
 
Posts: 594
Joined: Fri Jun 20, 2008 12:33 am

Re: Manchester United IPO

Postby winston » Sat Aug 20, 2011 10:32 am

No wonder the UK has degenerated over the years.

Reminds me of when I was there for training and my UK colleague told me to avoid the drunken football crowds.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118541
Joined: Wed May 07, 2008 9:28 am

Re: Manchester United IPO

Postby iam802 » Sat Aug 20, 2011 10:33 am

I am very slow today. Took me 2 reads to understand

IMTV = Indo/Malaysians/Thais/Veits
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 6353
Joined: Wed May 07, 2008 1:14 am

Next

Return to L to R

Who is online

Users browsing this forum: No registered users and 9 guests