Trading begins on shares in Rangers
Published 19/12/2012 | 11:56
Trading today began on shares in Rangers after the Glasgow club was listed on the stock exchange, with chief executive Charles Green hoping for a successful flotation.
Rangers last night announced over £22m (€27m) had been raised from their listing on the stock exchange and dealings on the Alternative Investment Market (AIM) began at 0800 today.
Green, whose company bought the assets and business of Rangers for £5.5m when the club was consigned to liquidation in June, believes Rangers will prove worthwhile to investors.
Green told BBC Radio 5 Live: "The institutional community have invested heavily. We've taken £17m already from institutions and that list is out there public; it's the great and good of London.
"For me as chief exec the really important endorsement is that of the financial community who have come out in support of it.
"All football clubs are high risk and there's been a history of failure to deliver.
"We know that football clubs historically haven't performed very well, but Rangers is an institution, it's a major sporting brand and we think that makes a difference."
The listed company is called Rangers International Football Club plc and will act as the holding company for the club.
Green was listed as the club's main shareholder in the share prospectus with a stake of almost 15pc, which will now be diluted. He had not planned to add to his shares.
Newcastle owner Mike Ashley was the third largest shareholder with 9pc before the issue of extra shares, behind a consortium called Blue Pitch Holdings.
Manager Ally McCoist had almost a 3pc stake before the issue and said he planned to buy more, although his shareholding will be diluted.
A statement read: "The total number of ordinary shares in issue at admission is 65,096,056, giving Rangers a market capitalisation of approximately £45.6m at the placing price.
"The funds have been raised in order to provide for a secure financial future, update and develop the club's facilities, capitalise on the club's global brand and enable the club to enhance its playing squad when appropriate."
Green said in the statement: "We are delighted to see our plans for bringing Rangers back to its glory days coming to fruition; a key part of which is its listing on AIM today.
"The response from investors and fans alike has been tremendous and we are very proud to have such loyal supporters.
"Rangers is a huge club with enormous support, and, a 140-year track record of success in both the domestic and international arenas.
"With a settled squad, led by manager Ally McCoist, the club has made a strong start to the 2012/13 season and the Rangers brand and facilities provide tremendous opportunities for commercialisation and expansion.
"The listing on AIM is an important step to ensuring the future success of the club."