Rangers confirms stock market plans
12 Oct 2012
Rangers has confirmed it will seek to return to the London Stock Exchange in a move that aims to raise up to £20 million towards ongoing efforts to re-establish the Scottish giant following its financial demise.
The Glasgow club announced on Thursday that it will seek admission to the Alternative Investment Market (AIM) of the London Stock Exchange. Rangers last month appointed Cenkos Securities to “assist with plans to raise additional capital” – a move that has precipitated the latest announcement. Rangers was listed on the PLUS Stock Exchange before its financial problems and said it intends to raise up to £20 million through an “institutional investor placing and limited public offering”. The funds raised will be used for strengthening the playing squad, improving and developing the club’s properties and facilities, as well as providing additional working capital. It is anticipated that admission will become effective before the end of the year.
“From the time we acquired the business and assets of Rangers FC, we indicated our intention to list the company and provide our fans with the opportunity to invest in their club,” said Rangers chief executive Charles Green. “I am delighted that our plans are coming to fruition. Rangers is debt-free and a huge club with enormous support and a 140-year track record of success on the domestic and international arenas. Our aim is to return the club to its glory days whilst ensuring it is run efficiently and profitably.”
The consortium of English businessman Green in June completed its takeover in a £5.5 million newco acquisition that resulted in the liquidation of administration-hit Rangers in its original guise. The club was subsequently demoted from the Scottish Premier League to the Third Division – the country’s bottom tier of professional football. Rangers sit third in the 10-team league after seven games of the new season.