Jul 2011 Financial News

AMG share allocation finalised

Jul 06, 2011

Investors from the general public who bid on more than $14,400 worth of shares in AMG Packaging and Paper Company Limited (AMG) will only get 17.1 per cent of the shares in excess of the first 5,000 they applied for, according to lead broker Stocks and Securities Limited (SSL).

Persons who bid on reserved shares — which totaled 7.1 million ordinary stocks offered at $2.30 each for AMG directors, employees and key customers — will however get 76.6 per cent of the shares they applied for.

AMG raised $57.8 million with an initial public offer (IPO) of 21.5 million ordinary stocks, or 21 per cent of the company, but the offer was oversubscribed by $187.1 million, or more than four times the targeted funds was actually bid.

On Monday, SSL notified the Jamaica Stock Exchange (JSE) of the basis for the allotment, which stated that investors from the general public that bid $2.88 a share for the remaining 14.4 million shares available to them would get full allotment for the first 5,000 shares, but would only get 17.08 per cent of the shares applied for in excess of that.

The basis of the allotment, which declared that 333 applications valued at $244.9 million were received, implied that the reserved shares were oversubscribed by $5 million, or 30.5 per cent, while interest from the general public was actually 5.4 times the amount available, or $224 million bid on the $41.5 million available.

The corrugated box manufacturer said it intends to use the funds for expansion and working capital purposes, including plant expansion and further development of its product range.

"All applicants will receive a formal letter advising them of their respective allotment of shares in the Company in due course, on or before Wednesday, July 13, 2011," said the statement from SSL. "For applicants who are not SSL clients, refund cheques will be prepared and can be collected from 24 - 26 Grenada Crescent, Kingston 05, during normal business hours (8.30 am to 5:00 pm Mondays to Thursdays and 8:30 am to 4:00 pm on Fridays) commencing Wednesday, July 13, 2011. For Applicants who are SSL clients, refund amounts will be credited to their respective accounts also commencing Wednesday, July 13, 2011."


Source:
Jamaica Observer
Wednesday July 06, 2011

http://www.jamaicaobserver.com/business/AMG-share-allocation-finalised_9146535#ixzz1RKfVKC8s