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Globe Financial Management
to launch IPO tomorrow
by David Kelleher
Globe Financial Management plc will be the newest financial
services company in Malta to be listed on the Malta Stock Exchange
when it announces its initial public share offering (IPO) tomorrow.
The company will be offering a total of 7.25 million shares
of 2c5 at a share price of 42c. If the initial offering is oversubscribed
a further 2.275 million shares will be made available.
Speaking to The Malta Business Weekly yesterday, Andrew Hammond,
Head of Compliance at Globe Organisation, said that the company
had been preparing for the IPO for the past 15 months. “This
IPO is the first offering of the year and is a very important
step for Globe Organisation,” Mr Hammond said.
Applications for the share offering will be available on 4 February
and the offer will open for listing on 8 February at 8.30am.
The offering closes on 15 February at 3pm or earlier if the
issue is oversubscribed.
“The basis of allocation of shares will be announced on
21 February. All those who apply for shares will be notified
of the amount allocated
to them on or before 28 February together with any refunds.
The date when the shares will start being traded on the stock
exchange will be decided by the Stock Exchange council,”
Mr Hammond said.
Of the total amount of shares on offer, 250,000 have been allocated
for members of staff, while another 2.5 million are being put
aside for Globe’s clients. The remaining balance will be
offered the public.
“A lot of our staff and existing clients have already expressed
an interest in buying shares. If, however, the number of applications
is above that amount of shares allocated to them, they will
join members of the public bidding for the remaining balance
on offer,” Mr Hammond explained.
Mr Hammond stressed that the IPO is not aimed at bringing in
extra finance for Globe but rather the founders are offering
to the public part of their share in the company.
“If the share offer is oversubscribed, the founders –
Chris Pace through his holding company, GFI and James Blake
– will still have 60 per cent ownership of the company,”
he said. It is very important that people realise the difference
between a subscription and an offer. The company is already
well capitalised and therefore does not need to raise further
capital,” he added.
Mr Hammond said that in July of last year, Globe had made a
private placement to strengthen the balance sheet and to bring
in external
shareholders. The private placement had brought in a further
Lm2m.
“Through the private placement the company has welcomed
28 external minority shareholders. Globe is now seeking a listing
on MSE and this will bring the company under the full rigours
of public scrutiny,” Mr Hammond said.
Asked whether the current drop in share prices on the Malta
Stock Exchange could have affected investor confidence and thus
investors may be sceptical about the new share offer, Mr Hammond
said investors should look at the long-term and not short-term
gains.
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