Rangers market delay
Club has yet to apply for listing with Securities & Derivatives
RANGERS are yet to apply for listing on the ICAP Securities & Derivatives Exchange market, three weeks after the club’s shares were de-listed from the prestigious AIM stock exchange.
Some fans have speculated the club has been refused a listing on the ISDX stock exchange, seen as a precursor to a vital fundraising share issue.
However, last night the club blamed the delay on the fact it has not yet found an adviser needed to sponsor its admission to the exchange.
Admission to London-based ISDX was thought to have been difficult as criteria included having at least 12 months’ working capital, which Rangers are unable to confirm. According to this benchmark, the plc would also be required to appoint and retain a corporate adviser at all times and demonstrate “appropriate levels of corporate governance”.
After the AIM de-listing was announced on April 2, Rangers interim chairman Paul Murray had said that ISDX were “keen to take us” while insisting their drop from the AIM stock exchange would not hamper their rebuilding plans.
Last night Mr Murray said: ‘‘During the course of the week of March 30 we requested a time extension from the AIM Regulation team to enable the company to ‘fast track’ across to the ISDX exchange. This would have taken five business days and would have been a cost-effective and seamless process for shareholders. It would have enabled trading to have commenced on ISDX immediately.
“In their wisdom the AIM Regulation team refused to grant this extension and the company’s shares were delisted on April 7.”
Mr Murray added that its refusal to grant the club an extension to “fast track” across to ISDX means it now has to go through the consuming and costly route of applying for admission, which can take two months or longer.
Mr Murray added that it had not been declined admission, but is working to choose an appropriate adviser to “sponsor” its way into ISDX, and currently had two in mind.
Club insiders said they hoped to list on the ISDX market, saying it would cost the club less in fees and make it easier to win investment.
ISDX was a successor to the Plus platform, where shares in The Rangers Football Club plc, now in liquidation, were traded in the past.
While a listing was pursued, Rangers put in place arrangements to allow shareholders access to a matched bargain trading facility for their shares with JP Jenkins, one of Europe’s biggest platforms for the exchange of unlisted securities.
The development comes as the Rangers board held their first meeting with Sports Direct and Newcastle United owner Mike Ashley.
The board, in declaring the AIM de-listing earlier this month, referred to prior issues that had “resulted in AIM receiving more complaints about the company than any other company on its exchange over the last year”.
The de-listing came a month after trading of plc shares were suspended from AIM after the club’s previous Nomad quit over concerns Dave King was taking control.
Mr King had condemned the move by former nominated adviser WH Ireland to quit over concerns he was taking control.
He eventually placed former director Mr Murray in as interim chairman after winning the Ibrox shareholder vote to remove the old board. The move was intimated as a temporary one until a new nominated adviser could be found.
The board, in declaring the AIM de-listing earlier this month, referred to prior issues which had “resulted in AIM receiving more complaints about the company than any other company on its exchange over the last year”.
ICAP declined to comment.