Offer and listing application process

Question 1

What is a retail public offer?

Answer 1

Shares offered to the public by the appointment of a receiving bank

Question 2

What is an institutional offer?

Answer 2

Shares offered through an investment bank and broker directly to investors

Question 3

Retail public offers - 2 ways

Answer 3

1) Offer for subscription - new shares sold to public

2) Offer for sale - existing shares sold to public

Question 4

Institutional offers - 2 ways

Answer 4

1) Placing - new/existing shares offered to specified institutional investors (placees)
2) Intermediaries offer - hybrid of retail and institutional - shares offered to intermediaries (fund managers/stockbrokers) who allocate their own clients

Question 5

What is bookbuilding?

Answer 5

• A way of marketing an issue of shares
• Investment bank/bookrunner runs a book of interest in shares from interested investors
• Bookrunners gauge interest in issue
• Roadshow presentations to potential institutional investors

Question 6

What is underwriting?

Answer 6

Lead underwriter (investment bank) will underwrite the issue, i.e., purchase any shares not taken up by investors

Question 7

What is a global offer?

Answer 7

An offer of shares in more than 1 country