Rangers Football Club won a favourable reaction from investors on its Aim debut, trading above its 70p flotation price. The club exceeded its £20m fundraising target, raising £22.2m and gaining a market capitalisation of £45.6m. Shares reached a high of 77p during first day trading before closing at 76p.
Although there was considerable institutional interest, about 11 per cent of the shares went to some 5,000 ordinary Rangers fans from whom about £5.2m was raised. Chief executive Charles Green is the biggest shareholder with 8 per cent.
Rangers Football Club won a favourable reaction from investors on its Aim debut, trading above its 70p flotation price. The club exceeded its £20m fundraising target, raising £22.2m and gaining a market capitalisation of £45.6m. Shares reached a high of 77p during first day trading before closing at 76p.
Although there was considerable institutional interest, about 11 per cent of the shares went to some 5,000 ordinary Rangers fans from whom about £5.2m was raised. Chief executive Charles Green is the biggest shareholder with 8 per cent.
Mr Green said that a number of factors were starting to work in Rangers’ favour. Among them talk,s to restructure the Scottish leagues should enable Rangers to return to the top tier a year earlier than expected. Uefa’s financial fair play regulations should favour clubs with big fan bases like Rangers.
Rangers has been able to run with a much reduced wage bill this season. The club is committed to a wages-to-turnover ratio of no more than 33 per cent, well below the norm for top clubs in England.
Cenkos Securities, the nominated adviser and broker, said Rangers’ equity value could more than double in three years if the club can unlock a global fan base with sponsorship deals.