NASCON special sales. Transparent deal or not?
June 18th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Following complaints by investors and stockbrokers over the non-availability of the shares of National Salt Company Plc at the secondary market, the Nigerian Stock Exchange (NSE) conducted a special sales of the shares of the company at the Lagos trading floor.
According to sources,the core investor, Alhaji Aliko Dangote was approached and asked to release part of his holdings in the company so that it will be traded upon . Dangote was also advised to offer the shares at a discount, instead of the prevailing market price of N27.00 per share, as this will help him to win the confidence of investors and will further help to create liquidity in the shares of the company.
In response to the 400 million units released by the core investor through the Issuing House, Vetiva Capital Market Limited, the NSE received a bid for 2.4 billion units from 181 dealing members of the NSE, making it to embark on an allotment program using the Range of Analysis method.
According to the DG of the exchange, “In the first category, 32 dealing houses bid for below one million units, 79 dealing houses bid for between one million and five million units in the second category, in the third, 21 dealing members requested for between 5.1 million to nine million, 26 dealing members, in the fourth category bid for between 9.1 million units to 20 million units while in the last category, 21 dealing houses bid for above 20 million units.
Following the excess bid it received it decided to allot the shares on the following basis; 500,000 units were allotted to 32 dealing houses each, 79 dealing houses received 1.5 million units each, 21 dealing houses were allotted two million units each, while 26 dealing houses received 2.5 million units each and 3.5 million were allotted to 21 dealing houses each.
The trading volume on the said day of this transaction stood at about154 million units. The question then is what happened to the balance of the 400 million that was to be sold off, if the bid was in excess?
(No Ratings Yet)
Loading ...
Can you please email when companies, particularly Banks and Cement companies are issuing public offer shares. I’m keen to start investing in Nigeria markets.
Hello psalm18. We do not offer an email service, but we post all the latest public offers on this blog. If you subscribe to this blog by RSS you would be updated once we make a post. All public offers can be found on this category page on this blog:
http://www.stockmarketnigeria.com/category/ipo/
Frequently-Asked-Question: What is an RSS feed? Answer: See http://www.semiologic.com/resources/blogging/help-with-feeds/