STOP THE PRESS ! Binners to have a second share issue ?

From the TWTD (Ipswich rivals) bb:

flojo Posted on 23/5 21:06 Email this Message | Reply
about this second share issue

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IPSWICH could once again turn to their fans in order to provide ailing club finances with a ?1million-plus boost.

I understand the board of directors are considering a second share issue aimed at Town's most loyal followers.

It may even be confirmed later this week after the Portman Road hierarchy's first close season get-together.

And if they go ahead, a substantial percentage of the cash raised is likely to go into a transfer kitty to help boss Joe Royle as he looks to mount another promotion challenge next term.

Royle has seen Town fail at the semi-final stage of the play-offs in each of the last two seasons, when money has been in very short supply.

With the 2005-2006 budget likely to be tight - hard-up Town are still around

?30million in debt and battling to recover from the problems that saw them slide into administration two years ago - Royle would appreciate any assistance.

Ipswich launched a share issue at the end of 2003, their first since 1936 when the professional club was formed.

Prior to that, the club's 36,000 shares were held predominantly by board members and their associates.

The new issue raised around ?1.3m that, although it met their target, was a lot less than some people had anticipated.

It created more than 3,000 new shareholders, meaning the ownership of the club widened. But the current board still controls a significant proportion of the shares .

Those who invested ?50,000 or more have become associate director shareholders and in the case of Holly Bellingham, who is understood to have invested substantially more, her appointment to the board was confirmed in February last year.

There are two types of share issue that the club are considering - a general issue and a rights issue aimed solely at current shareholders.

The latter option is thought to have more appeal, since the board would not reduce their own level of control.

In addition, a general issue would be much more expensive to administer, with a higher percentage of funds going to pay up the start-up costs, legal fees etc.

Raising funds by a rights issue would be a similar course of action as that adopted by a number of clubs looking to increase revenue in the short term.

Posted By: oh arr on May 24th 2005 at 05:10:25

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