SHARES in Scottish football giant Rangers closed at 76p after their first day of trading on the Alternative Investment Market (AIM) yesterday, signalling a dramatic comeback for the club.
The previous company that owned Rangers fell into liquidation earlier in 2012, but the club was rescued by a re-birth led by chief exec Charles Green.
Green has followed through with his plan to raise around £22.2m from a listing of more than 30m new shares, sold for 70p each.
Investors responded well on the stock’s first day of trading, sending the price higher than the initial price.
“It’s been an oversubscribed placing, so they actually achieved £2m more than they initially forecast,” Michael Jarman of H20 Markets told the BBC. “The club does offer value – you’re talking 26 Rangers to buy one Manchester United.”
Yet Rangers are still playing in the fourth tier of Scottish football, as the club was forced to start from the bottom of the ladder when the new company formed in the summer.
The sale gives Rangers a market capitalisation of £45.6m, despite it currently lying in the lower leagues.
The money raised from yesterday’s listing will allow it to invest in players and return to the Scottish Premier League, Green claimed.
“We are delighted to see our plans for bringing Rangers back to its glory days coming to fruition; a key part of which is its listing on AIM today. The response from investors and fans alike has been tremendous and we are very proud to have such loyal supporters,” Green said.
The CEO said that over £5m-worth of shares have been purchased by the team’s supporters.