'Positive' response to government stock issue

Both small and institutional investors reacted very positively to the Government Stock issue for which the Treasury received applications between July 21 and 26, the Department of Information said yesterday. These stocks were issued prior to the...

Both small and institutional investors reacted very positively to the Government Stock issue for which the Treasury received applications between July 21 and 26, the Department of Information said yesterday. These stocks were issued prior to the redemption of 5.6 per cent MGS 2005 II.

The Treasury received 2,290 applications with a total value of almost Lm93 million, when the stock issues amounted to Lm40 million. The Treasury will be increasing the amounts on issue and adopting the "over allotment option" as follows:

Stock

Amount
Issued

Additional
amount

Amount
alloted

5% MGS 2021
(Fungible)

Lm15m

Lm10m

Lm25m

5.7% MGS 2012 III
(Fungible)

Lm25m

Lm15m

Lm40m

While the small investors' share in the Stock due for redemption (5.6 per cent MGS 2005 II) was around Lm2 million, applications received for the new stocks from this sector amounted to over Lm17 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.

Sign up to our free newsletters

Get the best updates straight to your inbox:

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.