Rangers International Football Club – Stockmarket Refloating –up to £20 million to be raised
RIFC recently announced the appointment of Peterhouse Corporate Finance as its ISDX advisor, and sources close to the deal say that ISDX is desperate for RIFC to join its junior market in London. A few uncertainties remain.
Sources close to the deal have revealed that bosses at Peterhouse have had four meetings with RIFC Chairman David Cunningham King – with the FCA now having cleared Mr King as fit and proper to run a public company.
However, in order to list on ISDX RIFC must show that it has enough cash to last 18 months. Right now it has net debt of £5 million to the loathed Mike Ashley and is losing money and so we believe that simultaneous to the floatation on the ISDX there will be fundraising roadshow which would make an emotional appeal to the well-heeled among the Ibrox faithful and this could commence as soon as next month.
In order simply to clear the Ashley debt and fund 18 months of operating losses we believe that the New Regime at RIFC would have to raise at least £12 million, but in order to galvanise the Ibrox faithful the club would need to show that it was prepared to spend big on attracting quality players to Ibrox and that any fundraising would probably seek to raise £20 million.
Sources close to the deal say that the level of interest from City based Rangers supporters with large chequebooks has been immense and that institutional investment would be sought. However, King is believed to want to ensure that ordinary fans can also buy shares in the offering so that they can maintain a large stake in the club.
Assuming that the fund raise is successful Ashley would see his stake in the club diluted down to c3% and would then lose any influence. That would be a bonus for the New Regime at RIFC.
However, Ashley would retain his grip on the retail side of the business and Sports Direct will be expensive to dislodge from that particular Onerous Contract.
We believe that RIFC is targeting its debut on ISDX for well before Christmas.
Additional reporting by Tom Winnifrith