MANCHESTER UNITED is planning to raise up to $1 billion (€700 million) through a partial flotation in Singapore, in a move that would go a long way towards establishing a true valuation for the Premier League champions.

The club has appointed Credit Suisse to prepare for the float, which will aim to tap into the club’s strong Asian fan base, according to people familiar with the matter. One person said the plan was for 25-30 per cent of the club to be made available.

The Glazer family, the US-based owners of United, have long believed the club was worth more than £2 billion. However, one person with knowledge of the flotation plan said the Glazers had been advised that a partial flotation could establish a value of £1.7 billion. Wealthy United supporters, who were last year failed to buy the club from the Glazers, maintain that the club is not worth much more than £1 billion.

The Glazers, owners of American football team Tampa Bay Buccaneers and a string of US shopping malls, bought the UK club in 2005 in a £790 million leveraged buyout. Last year, the family tapped investors for a £500 million bond to refinance the club’s bank loans. United’s gross debts stand at more than £500 million.

The Glazers said last November that £220 million of high interest payment-in-kind notes were paid down, although they did not reveal how and by whom.

Red Football Joint Venture, the club’s parent company, announced a pretax loss of £109 million for the year to June 2010. Revenues grew more than 8 per cent to £156.5 million.

The club, which has a cash position of about £150 million, has negotiated a series of commercial deals. – Copyright The Financial Times Limited 2011