Tricky valuation at play as Rangers issue yet more shares at Ibrox – Finance Expert
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Rangers...
Dan Plumley has insisted that Rangers will have their own internal metrics to determine the price of their shares as they were questioned.
The Ibrox club have issued two new allotment of shares this month, both with prices of 25p, something that Dave King was not happy with due to what he believed was a low price.
The finance expert admitted that it is so tricky to determine what is a good price, with £1.9million banked earlier in the month from one of their latest issues.
“The share issue, you try and guess what that is for,” he exclusively told Ibrox News.
“You just see the share issue and mostly you look at Companies House and it tells you what it is. You don’t know whether that is going in as equity or cashed in for investment, you don’t know if it’s linked to something else. What we do know is the value of the shares is 25p so you can raise £1.9million and you try and question what it’s for.
“We have seen Rangers do this in the past, so it aligns with the past. With that structure and share prices, you try to pitch that against the valuation of the company and that is really tricky.
“They will have their own metrics internally on how they measure this.”
It is impossible to put an exact price that would be deemed right on these shares.
Obviously, if King is speaking out, he has the evidence that they are being issued on the cheap, something that would not make much sense at boardroom level.
In other Rangers news, the club are in line for a multi-million windfall from the Premier League after a £10m Auchenhowie milestone was reached.