At the close of public offer on 18 November, S$1.8 billion was received for S$500 million DBS Preference Shares on offer. This amount was 3.5 times more than the offer size. The retail subscriptions via ATMs and internet banking amounted to S$1.4 billion. The rest of the application money was for placement and reserve portions of the issue.
S$1.4 billion is not a small amount and it goes to show that Central Depository Pte Ltd (CDP) account holders using only cash for investments have plenty of cash on them.
Because of the overwhelming response to this initial public offering, DBS activated the upsize option and increased the total amount on offer to S$800 million. Of this S$550 million is set aside for retail investors. The retail demand worked out to be 2.5 times subscribed (instead of 3.5 times subscribed overall). This would mean that retail applicants get better chance of getting some allotment.
By Monday 22 November, applicants will get to know how DBS will allot the shares to successful applicants.
Copyright © 2010, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.