The prospectus of Ghazl Al-Mahalla IPO will not include an oversubscription system for the first 25,000 shares. The rest of the quantity will be subject to oversubscription.
More Details🧐 This is the first time the oversubscription system will not be applied to IPO subscribers, in the event that the number of shares required exceeds those offered.
This means that it’s possible for an investor to subscribe to 1,000 shares & get them, as long as they’re in the first 25,000 shares subscribed in.
Subscription is expected to start before mid-March, at the latest. Trading will begin in April, according to Al Mal News.
IPO Oversubscription❎ Oversubscription rate is the rate by which shares demanded exceed the offered shares. Why this matters🤔 This system creates a kind of justice among investors, especially small investors who usually end up with a significantly little amount of shares due to high oversubscription rates.
While 25,000 shares are a relatively small amount, the move comes as more of a test trial to gauge all parties’ satisfaction with the new method.