According to the new directive, the IPOs which are on or above Rs.3 billion can either allot 40 percent of the total issued shares or shares to the maximum value of Rs.1.5 billion, whichever is lower to the retail investors.
The directive also said, 40 percent allotment rule for IPOs below the value of Rs.3 billion will remain the same.
However, some of the analysts believe that this revision to the allotment rules were no coincidence, as the market is expecting its second largest IPO, which is believed to be around Rs.7 billion in value.
The new directive issued by the SEC also changed the definition of the retail investor when it comes to issues over Rs.3 billion.
According to an earlier directive, a retail investor was defined as an individual who subscribes up to the value of Rs.100, 000, but the new directive has increased this amount to Rs.200, 000.
source - www.dailymirror.lk