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 | Overwhelming response for preference shares |  |  |
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7 July 2004
Standard Bank Group Limited has received more than 7 000 applications totalling R3,6 billion in response to its offer to the public to subscribe for R500 million non-redeemable, non-cumulative, non-participating
preference shares, resulting in a 616% over-subscription to date.
Says Simon Ridley, Standard Bank Chief Financial Officer: "In view of the overwhelming demand we have decided to increase the value of shares available for subscription to R1 billion, the maximum contemplated in the public offer."
The directors have decided upon the following allocation formula.
Each applicant will be allocated a minimum of R100 000 of preference shares. In addition, for applications in excess of R100 000 applicants will receive 13.97% of amounts applied for in excess of R100 000, subject to a maximum allocation of R2 million per individual applicant. Where multiple applications were submitted by the same applicant, such applications were consolidated and treated as one.
"The public offer was aimed largely at the individual investor and we are delighted to have attracted 7 000 new preference shareholders" says Ridley.
Including the institutional placement, the total preference share capital raised by Standard Bank in its recent programme amounts to R3bn issued at a rate of 70% of prime.
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