Globe’s IPO oversubscribed by 1.65 million shares

Globe Financial Management plc has received more than 1,950 applications, for a total of 8.9 million shares, company chairman Christopher Pace announced yesterday.
The number of shares originally on offer, 7.25 million, was exceeded the day after applications opened last Thursday, but the offer was kept open until the following Monday at 12pm. The company has now decided to exercise its over-allotment option, and to satisfy the demand of all those who applied to buy the shares, rather than scaling down the number of applicants.
“We were overwhelmed by the tremendous response,” Mr Pace said. “We did expect a good take-up, but certainly not within 36 hours. The board is extremely satisfied with the large number of new shareholders, who have shown confidence in the company. I would like to thank all investors for supporting this share offer, and the company’s advisors, who have contributed towards its success.”
Bank of Valletta plc, which acted as manager, registrar and underwriter for the share offer, also voiced its satisfaction at the outcome.
Tom Anastasi Pace, the bank’s general manager for financial markets, said: “We were very pleased with the smooth handling of the offering, and the early closure following the very strong response. We received great support from all participants, and this IPO was another successful chapter in the development of capital markets.”
Franco Xuereb, sponsoring stockbroker to the share offer, who heads the newly set up stockbroking company BOVSL, expressed his pleasure at the successful outcome of the Globe Financial Management IPO. “This is the first share offer we have handled,” he said, “and it has certainly been a very positive experience.”
Globe Financial Management plc is now looking towards a future with a considerably widened shareholding. “This is exciting, as we have many plans,” said Christopher Pace. “We have been working towards this share offer for the last 15 months, and are thrilled at the outcome.”