AIK shares match team's climb
The Local · 27 Sep 2005, 12:50
Published: 27 Sep 2005 12:50 GMT+02:00
In just one year the AIK shares have risen by a dizzying 60%. In October last year, when the club was desperately fighting to remain in Sweden's top league, trading in shares on the Alternative stock market was resumed. Then, one share cost 5 kronor and AIK was relegated to Superettan, the second division.
Barely a year later, the club's return to the top flight is as good as certain and the share price is riding high at 8 kronor.
While it is not necessarily just sporting success which lies behind the increase, there does not appear at first to be much else to go on. In the last quarterly accounts, for example, AIK reported an increase in losses and significantly reduced income.
Even seen in a longer perspective, AIK shares are viewed by many as a wretched investment.
When AIK Fotboll was made into a limited company in 1999 and the shares sold to fans and other prospective buyers, the introductory price was 64 kronor. The goal was to be listed on the Stockholm bourse.
The following year, the unofficial price of the shares approached 80 kronor. But by the end of 2000, the price had slumped, interest in the shares had tailed off and the stock exchange listing was postponed.
Trading was cancelled and the shares, at least for the smaller investors, became more or less worthless.
Today, those who held on to their shares at last have a chance to earn back some of their initial investment.
And soon there will be another chance to invest in AIK. During the autumn, the club plans a new share issue to raise up to 30 million kronor.