'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 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:

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.