Is softlogic oversubscription information accurate?

nilantha · 1 Is softlogic oversubscription information accurate? Wed Jun 22, 2011 7:57 pm

nilantha

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according to the sec daily report softlogic retailer sector was oversubscribe by 2.56times.
but thy have allotted all the retiles fully and up to shares 34500
my q is how they allotted all the shares if oversubscribed by 2.56

pls go through with this matter

RIO

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nilantha wrote:according to the sec daily report softlogic retailer sector was oversubscribe by 2.56times.
but thy have allotted all the retiles fully and up to shares 34500
my q is how they allotted all the shares if oversubscribed by 2.56

pls go through with this matter

Pls attach links/documents to verify the over subscription...!

rijayasooriya

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nilantha wrote:according to the sec daily report softlogic retailer sector was oversubscribe by 2.56times.
but thy have allotted all the retiles fully and up to shares 34500
my q is how they allotted all the shares if oversubscribed by 2.56

pls go through with this matter

I think sec daily report is done in a wrong way.....as announcement made by softlogic on 14 June says,
23476 Bank drafts and cheques for 142,567,800shares.
They are offering 139mn shares.Therefore retail sector can not be oversubscribed.
However sec may calculate as follows,
Nunber of shares for retail catogary---->139,000,000/100*40=55,600,000
They have devided this value with number of applied shares by bank drafts and cheques,
142,567,800/55,600,000=2.564

Fresher

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again I post the question, is it right to close the issue fi the retail category is not fully subscribed on day 1 ?

MarketResearch

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nilantha wrote:according to the sec daily report softlogic retailer sector was oversubscribe by 2.56times.
but thy have allotted all the retiles fully and up to shares 34500
my q is how they allotted all the shares if oversubscribed by 2.56

pls go through with this matter

For a Example:

The total number of shares : 1,000,000
The Number of Applicant : 5

A has applied for 200,000 shares
B has applied for 500,000 shares
C has applied for 300,000 shares
D has applied for 250,000 shares
E has applied for 450,000 shares

Then Total Requested shares : 1,700,000 (A+B+C+D+E)
Total Number of Shares :1,000,000
Over Subscribed 1,700,000/1,000,000 -----> 1.7
Share Allocation for each person: 200,000 (1,000,000/5)

So why can not Softlogic oversubscribed?

Thanks.

Happy Trading

Academic

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I didn't see the daily report. However, it is clear retail category was under-subscribed as up to 34500 fully allocated.

DK

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npp wrote:again I post the question, is it right to close the issue fi the retail category is not fully subscribed on day 1 ?

Hi npp,

There is no restriction on the subscription of the retail category for the IPO closure. An example text on an IPO would be: "Offer would be open from dd-mm-yyyy for xx market days or until the date the issue is fully subscribed."

Check what Softlogic has said in their IPO.

Fresher

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DK wrote:

npp wrote:again I post the question, is it right to close the issue fi the retail category is not fully subscribed on day 1 ?

Hi npp,

There is no restriction on the subscription of the retail category for the IPO closure. An example text on an IPO would be: "Offer would be open from dd-mm-yyyy for xx market days or until the date the issue is fully subscribed."

Check what Softlogic has said in their IPO.

I know DK. it is same for any IPO. What I have been asking is, Is it right to close the issue with less than 40% of the category subscribed? whether or not it will be subscribed later on is a different story

swarnasana

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Over-subscribed means, the total applied is above and over the issued number, irrespective of the numbers under each category.

Fresher

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swarnasana wrote:
Over-subscribed means, the total applied is above and over the issued number, irrespective of the numbers under each category.

thank you for that information.

if i continue i sound silly so ill leave it at that

CSE Today

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npp wrote:

swarnasana wrote:
Over-subscribed means, the total applied is above and over the issued number, irrespective of the numbers under each category.

thank you for that information.

if i continue i sound silly so ill leave it at that

Dear NPP..refer to this link ..the answer to your Q is on 2nd page of it...

http://www.cse.lk/270808/pdf/rules_regulations/cse_circulars/25_05_2011_CSE_Circular.pdf

Regards

Fresher

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CSE Today wrote:

npp wrote:

swarnasana wrote:
Over-subscribed means, the total applied is above and over the issued number, irrespective of the numbers under each category.

thank you for that information.

if i continue i sound silly so ill leave it at that

Dear NPP..refer to this link ..the answer to your Q is on 2nd page of it...

http://www.cse.lk/270808/pdf/rules_regulations/cse_circulars/25_05_2011_CSE_Circular.pdf

Regards

thank you for your understanding. you came closer to understanding me Smile

but imagine this. retail category and unit trust category combined were subscribed for less than 50%. yet if the total issue was oversubscribed on the first day, the issue will close
but i it right to do so or should the issue be kept open for only the retail/UT category until they are subscribed too?
people are used to IPOs being closed on opening day itself, but that doesn't mean that some will decide to subscribe on 2nd, 3rd days if it is under-subscribed (of course it may speak negatively on he quality of the IPO but still)

CSE Today

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npp wrote:

CSE Today wrote:

npp wrote:

swarnasana wrote:
Over-subscribed means, the total applied is above and over the issued number, irrespective of the numbers under each category.

thank you for that information.

if i continue i sound silly so ill leave it at that

Dear NPP..refer to this link ..the answer to your Q is on 2nd page of it...

http://www.cse.lk/270808/pdf/rules_regulations/cse_circulars/25_05_2011_CSE_Circular.pdf

Regards

thank you for your understanding. you came closer to understanding me
but imagine this. retail category and unit trust category combined were subscribed for less than 50%. yet if the total issue was oversubscribed on the first day, the issue will close
but i it right to do so or should the issue be kept open for only the retail/UT category until they are subscribed too?
people are used to IPOs being closed on opening day itself, but that doesn't mean that some will decide to subscribe on 2nd, 3rd days if it is under-subscribed (of course it may speak negatively on he quality of the IPO but still)

No need buddy..this link is only an SEC amendment the original Announcement has addressed the thing what you are referring...! if these both categories are not fully/over subscribed then Non retailer category gets the advantage to get the left out of Retailer & Unit Trust Category......therefore an IPO can be closed on the first day of total fully/over subscription.

gamaya

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Oversubscription notice is the best advertisement they get. This they can easily do with bank guarantees. But "Handa thiyanne eyala athe" so they can load the junk on poor retailers as they wish.

And who is going to check if they closed the subscription on first day. I dont think so.

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Is softlogic oversubscription information accurate?

1 Is softlogic oversubscription information accurate? Wed Jun 22, 2011 7:57 pm

nilantha

2 Re: Is softlogic oversubscription information accurate? Wed Jun 22, 2011 8:51 pm

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3 Re: Is softlogic oversubscription information accurate? Wed Jun 22, 2011 9:07 pm

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