Manchester United switch flotation plans to US after Singapore delays

Manchester United has ditched its plans for an Asian stock market flotation and is preparing to list in the United States.

Sources close to the deal said the English club’s US owners had become frustrated with long delays in approval from Singapore’s stock exchange.

The Glazer family had originally looked to Hong Kong for their $1 billion (£640 million) IPO, but hit problems because of their plan to use a two-tier share structure to retain full control of the company.

One of the sources also said Manchester United had always planned to position itself as a global media business rather than a sports franchise, suggesting that a US listing would make more sense.

US investors are already familiar with the dual-class share structure that was under discussion for United’s Singapore listing, having seen it used by household names such as Google and Facebook.

As a result of its change of listing location, Manchester United is expected to make changes to its book-running syndicate.

The news will be another blow to equity capital markets in Asia, where deal volumes have fallen sharply this year, excluding Malaysia. United’s decision is particularly bad news for Singapore, where motor racing company Formula One delayed its planned $3bn IPO in June.

But bankers in Asia were sceptical about prospects for floating in the US given volatile markets, with one industry figure describing it as a “brave move”.

A recent survey by Forbes rated United as the world’s most highly valued sports team. Unlike many English clubs, it is profitable, though earnings were dented last season by the team’s failure to win a trophy.

It has commercial partners in more than 70 countries and last month it signed a sponsorship deal with General Motors, the world’s largest car maker.