(Reuters) Malaysian billionaire Vincent Tan is exploring an IPO of UK football team Cardiff City as early as this year, people with knowledge of the matter told Reuters, in a deal that would follow the teamâs recent promotion to the Premier League. A listing for the Welsh team would follow Manchester Unitedâs debut on the New York Stock Exchange last year, which raised US$233.2m in the largest sports team IPO ever. The process is in its early stages, the people said, with details on the timing, size and listing venue subject to change. Tan, who owns 36.1% of the club and is the former chairman of conglomerate Berjaya Group, has engaged at least one investment bank to lead the process, according to the people. The initial plan is to list the club on the Kuala Lumpur Stock Exchange, one of the people said. The deal may be completed as early as this year, another person said. Tan was unavailable for comment. He is Malaysiaâs tenth richest person with a net worth of US$1.3bn, according to Forbes. Malaysiaâs IPO market, normally among Asiaâs quietest, sprung to life last year with several multi-billion dollar listings, lifting the Kuala Lumpur exchange to rank No. 4 globally for new listing proceeds. Promotion Cardiff City were promoted to the English Premier League last month after a 51-year absence. Its recent fortunes run counter to another team owned by a Malaysian. Tony Fernandes, chief executive of Malaysiaâs Air Asia, saw his Queens Park Rangers relegated from the Premier League in what he called a âtragicâ season. Promotion to the Premier League is estimated to be worth at least £120m (US$181m) to clubs over the next five years because of access to a share of lucrative television rights deals. Cardiff were on the brink of administration and escaped a winding-up petition at the High Court in 2010 after settling a £1.9m tax bill. Tan has sought to increase the clubâs marketability, especially in Asia, although his decision to change their traditional blue kit to red sparked controversy. Nicknamed the Bluebirds, having played in blue for over 100 years, Cardiff now have a red badge featuring a dragon. Although revenues will rise, clubs like Cardiff will need to invest heavily in new players to ensure that they are competitive in the Premier League. Thoughts anyone?
Hmm, a gamble but on the upside he would have to reduce the debt to make it an attractive proposal for potential investors. This would mean him converting his loan to shares and getting that monkey called Langston paid off.
If there is any truth in this story then I would expect a resolution of the Langston issue very soon.
This is the way big business goes and shows a much broader train of thought and financial philosophy. I suspect there has been a lot of interest in the club in the far east following our promotion and investment could be seen as an opportunity to buy into the club at an entry level with the scope for major returns and profits if we maintain our success.
Looks like vincent tan is considering floating cardiff city on the kuala lumpar stock exchange thought i would put this up for you bluebirds to discuss http://www.bbc.co.uk/sport/0/football/22651366 Cheers Mabon
well the devil will be in the detail. Will he sell his and/or others' shares or issue more? if he sells his, then we see nothing but if there is an issue, then the club sho9uld see some income. Then it depends how it is used...pay down debt or invest in the team and facilities? But if he issues new shares, he will dilute his package.
I believe he will convert his loan as a club with "debt" is not an attractive proposition to would be investors. He has also previously stated he was in it for the long haul.
Tan is a businessman first and foremost and so this is area of expertise I guess. How good it will turn out to be if it goes ahead remains to be seen, United struggled a bit at first and compared to them we are pretty low down in this area. I guess thats what the red was all about though, would make sense.
The problem I see with this is: What happens if we get a load of greedy buggers who just sit on their shares and rake in the dividends? My business knowledge is limited but, as far as I'm aware, this could happen.
Buy some shares then lads...you wanted some fan input. Surely a big club like yours has enough loyal fans who believe your a safe financial bet?
Arwr, for investors to make money they need to show a that business is profitable so it is in the shareholders interest to make that business successful. A basic veiw as there are so many factors involved. So for the IPO to happen and get a decent return VT and the board of directors need to ensure we are well placed when the company goes public. To that end I believe VT will come good on his promise to turn his investment into equity and settle the Langston issue once and for all. I do not see this happening straight away and may not see it happen for a couple of seasons as a stable premier league side is a better vehicle than a newly promoted club. The downside for some if the Langston debt may be turned into equity and we see Sam back at the club in some capacity other than honourary chairman. However, it may not happen at all as all parties have to agree a reasonable price for the club. Interesting times ahead methinks.
Do none of you fancy investing then? I thought you'd jump at the chance. Surely you think its a sound investment....or do you?
