Monday, September 23, 2013
Formula One (potential IPO): Bernie Ecclestone insists plans for a multi-billion dollar IPO in Singapore are still very much on despite a lengthy delay in the process, saying he was "sure" Formula One would float on SGX as soon as the timing is right. The glitzy, global Championship has been mulling a flotation for more than a year, but the process was put on hold in Jun ‘12 due to market volatility. Formula One is close to finalising a Concorde Agreement with its various teams to determine how to divide up revenues over the coming seasons. However, Ecclestone indicated the deal was not the major factor governing when the IPO would go ahead. Singapore, one of 19 stops on this year's schedule, is viewed as an attractive destination for IPOs because of it status as a large, stable and transparent Asian financial centre. English Premier League football club Manchester United also considered listing in Singapore before it eventually chose New York last year. Earlier reports said private equity firm CVC Capital Partners, the biggest shareholder, would seek a valuation of more than $10b when the flotation finally goes ahead. Ecclestone controls about a 5% stake in F1, which he has cannily built into an empire with annual revenues of ~$1.5b. He has also cleverly exploited F1's cachet and high profile to take the sport into new markets, charging venues large fees for the right to stage races.