Rangers hire Cenkos Securities to advise on stock market return

By KEITH WEIR
Published on 08/09/2012 00:00

THE Rangers Football Club has appointed advisers to work on a possible return to the stock market as the new owner seeks to rebuild the former champions following the club’s relegation to the bottom tier of the Scottish league.

The club yesterday hired Cenkos Securities to advise on plans to raise additional funds. Based in London, Cenkos specialises in working with small and mid-cap companies.

Rangers, Scottish champions a record 54 times, collapsed under the weight of the club’s debt earlier this year.

The club’s chief executive, Charles Green, said in a statement: “From the day the consortium I led became owners of Rangers, we have repeatedly stated our intention to raise additional capital for the club and would explore all avenues, which may or may not include a stock market listing.

“We are still in the preliminary stages of this process and will make further announcements once the club has been able to consider its plans in further detail,” he added.

Scottish clothing company Glenmuir was among the new investors when Green took over the club.

Rangers was on the Plus Stock Exchange before the club ran into financial problems, while Celtic is one of the few sides to retain a listing.

Investors have shown limited appetite for owning football club stocks, given their high salary costs and the way that setbacks on the field can affect earnings.

Manchester United floated in New York last month, the largest sports team initial public offering on record valuing the club at $2.3 billion (£1.4bn). However, the shares have fallen to $12.85 from an initial $14.

Rangers currently sit fourth in the ten-team Scottish third division. The club’s supporters have remained loyal to the side – buying more than 35,000 season tickets.