Rangers International Football Club has raised £22.2 million via a placing on the Alternative Investment Market (AIM) and is now targeting squad development.
On 11 October 2012, Rangers announced that it was joining its footballing rival Celtic on AIM as it looked to re-build following a process which saw it having to reapply to the Scottish Football League.
The Glasgow-based club hit financial trouble earlier in the year and was forced to enter administration in February 2012 with reported debts of £134 million.
Charles Green CEO of Rangers, comments, ‘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.’
As part of the process, the Rangers Supporters Trust has submitted a cheque for £250,000 to apply for shares with the club’s stockbroker.
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Fans of Rangers Football Club were offered the chance to invest in their team through commitments starting at £125, and ending at £20,000.
‘Buy Rangers’ is said to be a community share initiative, with fans purchasing a share in the Rangers Supporters Trust, which then functions as a Community Benefit Society authorised by the Financial Services Authority.
Some 2,000 individual investors including Alastair Johnson, two Rangers supporting members of parliament and former player Kris Boyd signed up for contributions.
According to Rangers, the funds have been raised in order to provide for a ‘secure financial future’, update and development of the club’s facilities and to enable the team to enhance its playing squad ‘when appropriate’.
Green adds, ‘With a settled squad, led by manager Ally McCoist, the club has made a strong start to the 2012/13 season and the Rangers brand and facilities provide tremendous opportunities for commercialisation and expansion.
‘The listing on AIM is an important step to ensuring the future success of the club.’
Since Rangers relaunched itself as a new team in the lowest tier of Scottish football, it has 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 as a listee in its new guise as ISDX.