Quote:
Originally Posted by timothywill
firstly, those millions you saw being traded are cross-deal from one dangote's portfolio to another but when it got to N50, its from one dangote's portfolio to public investors. how do you want us to take heart, we can only take heart if we too can bring our little business to the stock market, like i now will be going public.
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I think those early trades might have come mainly from those that got preferential allotments - the existence of which SEC has now outlawed. It would be recalled that SEC stated last week that a (or, rather, the) reason for outlawing preferential allotment (which is a normal thing in the rest of the world) is because banks were abusing the process by allowing preferential allottees to have their allotments prior to others, thereby enabling them to trade in the shares at advantagous prices before the market witnesses gluts from other subscribers. So, probably the same thing occured in the present case. But we should also bear in mind that many non-preferential subscribers had their allotments directly credited to their CSCS accounts. I was one of those (though some members of my family were not so lucky to be among) and I sold my allotment hurriedly/prematurely when it rose to 39.96 Naira (becasue I needed money to put into Skye Bank PO on the last day, Friday, that my broker stipulated as its own deadline for submission of application). Otherwise, I would have waited till when the price reached about 45 Naira or so before selling. So, I think it is just a conspiracy theory to say that it is Dangote himself that was offloading a part of his own 75% holding.