Glasgow & West Scotland

Rangers share issue aims to raise £27m

Image caption The Rangers flotation details come 10 business days ahead of listing

Rangers Football Club hopes to raise up to £27m in its forthcoming share issue, it has emerged.

Ahead of the launch on the Alternative Investment Market (AIM), the club said it had already received pledges of £17m from business investors.

It hopes to attract another £10m of investment from supporters, bringing the total value of the club to £50m.

The Third Division club will be floated on the AIM as Rangers International Football Club plc.

The information is contained in a document lodged with the London Stock Exchange.

Companies make these announcements 10 business days ahead of their first anticipated day of listing.

Largest shareholder

The document shows that Newcastle United owner Mike Ashley already has an 8.9% stake. It is projected his stake will fall to 5.2% after the flotation.

Once listed, Rangers' chief executive Charles Green is projected to be the largest shareholder with an 8.67% share.

He has previously stated his intention to ensure that no-one gets more than 10% of shares.

The flotation, according to the document, is also attracting investment from Hargreave Hale Limited, Artemis Investment Management LLP, Margarita Funds Holding Trust, Cazenove Capital Management Limited, Legal and General Investment Management Limited and Insight Investment Management (Global) Limited.

Other investors include Richard Hughes, Imran Ahmad and Craig Mather.

The document states: "Rangers International Football Club plc following admission will own and operate Rangers Football Club Limited."

Market capitalisation

It states: "Up to £27m to be raised on admission through the placing and public offer.

"Anticipated market capitalisation £50m (assuming subscription in full of the public offer)."

The document also states: "Upon admission, Rangers International Football Club plc will acquire Rangers Football Club Limited on the basis of a one for one share exchange and after admission Rangers International Football Club plc will be the holding company for the group."

Mr Green led a consortium which purchased the assets of the former Rangers Football Club, which is now in the hands of liquidators, for £5.5m.

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