Piraeus Bank has said that it has completed the book building
process for the issuance of 10NC5 dated subordinated notes worth EUR400m, through its wholly owned UK subsidiary, Piraeus Group Finance Plc and under the EUR25,000,000,000 Euro Medium Term Note Programme.
M2 EQUITYBITES-June 21, 2019--Piraeus Bank completes book building
process for subordinated notes offering
Following the completion of the institutional book building
process, the one day retail offering took place on May 9, 2019.
'There are some fundamental questions: if brokers/investment banks wanted to offload the stock on the first day, then why did they buy the stock in book building
? Was it done merely to create over-subscription and raise public appeal for the stock during the IPO?' said Mr Jafri.
The two-day book building
process was over-subscribed by 1.37 times with price closing at Rs.
The electronics manufacturer aims at collecting Tk 1 billion from the capital market through initial public offering using the book building
method for conducting the activities of factory's expansion, modernisation, research and development, repaying partial bank loans and meeting IPO expenses.
According to At-Tahur's IPO prospectus 'The issue is being made through the book building
process at a floor price of Rs20.00 per share (including a premium of Rs10.00 per share) with an upper limit of 40 percent above the floor price.
The success of the IPO can be gauged from the fact that, both Book Building
and General Public Portions of the IPO received overwhelming response despite tough market conditions (Book Building
portion subscribed by 160%; General Public portion subscribed by 112%).
The Capital Markets Authority (CMA) board issued its resolution to adopt the updated instructions on Book Building
and Allocation of Shares in IPOs.
To ensure fair price discovery for IPOs through book building
mechanism, certain changes have been made to the book-building process, which include the introduction of concept of price band with the upper limit of not more than 40% of the floor price.
The concept of price band with the upper limit of not more than 40% of the floor price has been introduced in the amendments to ensure fair price discovery for IPOs through the book building