Warning over share issue

SUPPORTERS Club chairman Andrew Redfern has warned that a proposed second share issue by Ipswich Town may not bear much fruit, writes Derek Davis.

Redfern believes the club should wait to see how the first annual meeting for shareholders, expected some time in the autumn, to gauge feeling.

Blues supremo David Sheepshanks admitted the club is considering asking for more cash by way of a share issue later this season.

He said: "If we are high in the table later in the season, say at the midway point, then maybe that would be the moment to consider it seriously.

"But we have to judge it; where we are, where we perceive the market place is, what the mood of the fans is and what the opportunities for strengthening the squad are. All of these things.

"It's a cash call though and that means everyone has got to dig in their pockets again and we don't want to go on asking fans to dig in their pockets if we don't have to."

Town raised slightly less than the hoped-for £2m with their first share issue which more than 2,000 fans bought into.

City broker Michael Spencer bought £200,000 himself while others who spent more than £20,000 included Elizabeth and Timothy Edwards, Duncan Foster, Phillip Kerridge, John Kinder and James Wood and all have been made associate directors.

Redfern fears there may not be many more potential investors left to buy the new shares.

He said: "It is unlikely that any supporters that missed out first time round regretted not buying shares.

"From the club's perspective it could be intended to see how much could be generated.

"Certainly if Ipswich are in the top six and are looking to progress then they will hope people will be positive about it and invest.

"I imagine though that it would be mainly corporate investment mainly rather than genuine supporters and season ticket holders who may have invested what they could first time around."