Government stock issue oversubscribed
The Treasury has received 3,268 applications, for a total value exceeding Lm72 million, for the government stock issue amounting to Lm40 million. The government said both small and institutional investors reacted very positively to the issue for which...
The Treasury has received 3,268 applications, for a total value exceeding Lm72 million, for the government stock issue amounting to Lm40 million.
The government said both small and institutional investors reacted very positively to the issue for which applications were received by the Treasury between May 12 and 19.
The stocks were issued prior to the redemption of 7.25 per cent MGS 2005.
While the small investors' share in the stock due for redemption (7.25 per cent MGS 2005) was about Lm5 million, applications received for the new stocks from this sector amounted to over Lm18 million.
The Treasury said all subscriptions by the small investors will be entirely accepted while the residue will be allocated to the institutional investors in the order of the bid price offered.
The Treasury will be increasing the amounts on issue and adopting the over allotment option as follows:
Stock Amount Additional Amountissued amount allotted
5% MGS 2021 (Fungible) Lm15m Lm10m Lm25m
5.7% MGS 2012 III Lm25m Lm10m Lm35m
(Fungible)