Embattled Scottish football club Rangers has unveiled plans to list on the Alternative Investment Market and raise funds for squad development.
Rangers Football Club is set to list on the public markets and is looking to secure £20 million through an institutional investor placing.
The football team, which was forced to reapply to the Scottish Football League for readmission to the Fourth Division after financial problems, expects the admission to the Alternative Invesetment Market (AIM) to become effective before the end of the year.
Despite playing in a 51,000 seater stadium and having 36,000 season ticket holders, Glasgow-based Rangers entered administration in February 2012 with reported debts of £134 million.
The funds raised will be used for strengthening the player squad, improving and developing the club’s properties and facilities, as well as providing additional working capital.
Charles Green, chief executive of Rangers, comments, ‘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.’
Green says that in its current state the club is debt-free and has ‘enormous support’.
Since it relaunched itself as a new team in the lowest tier of Scottish football, Rangers secured a £2 million investment from private equity firm Abraaj Capital and surrendered an 18 per cent stake in the business.
The football club has previously had listings on the PLUS Stock Exchange, which currently counts Arsenal Football Club has a listee. Its city rivals Celtic are also listed on AIM.
Maclcom Murray, chairman at Rangers, says that Green has done a ‘great job’ to bring the club back from the brink of extinction.
‘We now move on to the next stage which is full recovery and growth. The fans loyalty has been instrumental in getting the club to its feet and the IPO gives them a chance to have a say on club matters.’