Quote:
Originally Posted by zainabusman
Well if the offer is only 200% oversubscribed then it is not bad at all. Because it means the worst that can happen for most of us is to get 50% allotment even if Bank PHB decides not to keep the extra 25%. If bank PHB decides to keep the extra 25% as mentioned in the prospectus, then most of us will get at least 62.5% allotment. Which is good in my books.
|
You seem to be confusing 200% subscription with 200% over-subscription. What is mentioned is 200% over-subscription, which translate to the offer being 300% subscribed. That would mean, after allowing for absorption of 25% over-subscription, the bank would allot only 150% of what was subscribed for so that, on "average", a subscriber would get 50% of what was applied for. But, given 100% allotment to preferential allottees (and 55% of the offer was to go to them), a non-preferential "average" allottee would still get less than 50% of what was apllied for.
But what I still do not understand is the reason why Fidelity Bank was able to absorb more than 25% of its own over-subscription. Does it mean it was able to get waiver or what? In the same vein, it was publicised recently that First Inland Bank PO was over-subscribed and the MD stated, while on the tour of an Eastern State (is it Anambra or so?), that all subscribers would be fully allotted. Would the Bank PHB too be given such a waiver, if it request for it? But the same waiver was denied Japaul Oil and that is why it had to resrt to the alternative of private placement. The whole thing looks confusing to me somehow and I request to be educated on this.