Town have announced that existing club shareholders will receive a letter later this week as the club seeks their approval for the new share issue planned for later this year.

The current shareholding is set to be diluted to around 15% of the value of the club when the new issue takes place.

The letter will also include details of the new loan stock's rates of conversion to ordinary shares.

Chairman David Sheepshanks says that the letter is the initial step towards the issue which is expected to take place in the autumn: "This is the first step towards achieving our promise of launching a public issue of shares later in the year.

"The directors are unanimously supporting the resolutions and I hope that the shareholders will also come to similar conclusions after they have had time to consider the detailed proposals.

"The future prosperity of Ipswich Town Football Club is our key objective as we seek to re-capitalise the business as strongly as possible.

"I know many supporters are keen to buy shares in the club, however, we must ask them to be patient as the legal processes required to enable us to undertake a public issue are considerably more complicated than for most companies, given our recent financial history.

"At this early stage, however, we can say that it is the directors' intention that the minimum subscription for shares will be £200, thereby striking a balance between what is administratively practical and our wish to appeal to as many individual supporters as possible who wish to share in the ownership of the club going forward.

"There will be a sliding scale of shareholder benefits for those who are able to invest greater amounts.

"We will shortly be providing a confidential facility via the club website and inviting supporters to pre-register their interest with the club."

The newly-formed Supporters Trust, Ipswich Town Ist, are seeking to buy a stake in the club for fans via the share issue. To read more on the Trust and to download membership forms, visit " target="_blank">http://www.ipswichtownfirst.co.uk

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