Subject category:
Finance, Accounting and Control
Published in:
1993
Length: 32 pages
Data source: Field research
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Abstract
When London merchant bank, Robert Fleming and Company, managed The Wellcome Trust''s offering of shares on the London Stock Exchange in 1992, it did so in a very skilful manner. At least one notable feature of this offering was its size - the largest, fully-paid non-privatisation secondary offering of shares ever to take place on the London Stock Exchange and internationally. Part Two of this case study discusses Fleming''s choice of share-offering technique - both - building with over-allocation and a green-shoe option, an innovative technique on the UK domestic equity market. Then, month-by-month progress of the deal is charted. From a number of points of view, the offering is considered successful. An attractive price was obtained, a much broader institutional and geographical spread of shareholding was achieved, and the market was efficiently stabilised against the background of a freely-falling stock market. The case study illustrates the efficiency of a new equity-capital raising technique in the UK. This is a follow-up to The Wellcome Share Offering: Part One - Strategy (293-001-1).
Location:
Industry:
Size:
Multinational, large
Other setting(s):
1992
About
Abstract
When London merchant bank, Robert Fleming and Company, managed The Wellcome Trust''s offering of shares on the London Stock Exchange in 1992, it did so in a very skilful manner. At least one notable feature of this offering was its size - the largest, fully-paid non-privatisation secondary offering of shares ever to take place on the London Stock Exchange and internationally. Part Two of this case study discusses Fleming''s choice of share-offering technique - both - building with over-allocation and a green-shoe option, an innovative technique on the UK domestic equity market. Then, month-by-month progress of the deal is charted. From a number of points of view, the offering is considered successful. An attractive price was obtained, a much broader institutional and geographical spread of shareholding was achieved, and the market was efficiently stabilised against the background of a freely-falling stock market. The case study illustrates the efficiency of a new equity-capital raising technique in the UK. This is a follow-up to The Wellcome Share Offering: Part One - Strategy (293-001-1).
Settings
Location:
Industry:
Size:
Multinational, large
Other setting(s):
1992