Problem over V-ONE allocation System

As per the prospectus

3.14 The basis of allotment
para3 (page 21)

Investor/s who apply for up to a maximum of 4,000 Shares (including 4,000 Shares) will be deemed as Retail Individual Investors for share allotment purpose.

Now according to the CSE announcement VONE has reinstated retailer category only upto 1000 shares...and applications above 1000 being recognized as NON retailer category...?
http://www.cse.lk/cmt/upload_cse_announcements/7281309500213_.pdf

What is this mess...

well i understood this way

if you applied under retail category full ( 4,000 ), shares then you will get 1,400 shares, if you apply under non retailer category minimum 4,100 shares you will get 1,000 or 1,100 ( maximum round off )

Gaja wrote:well i understood this way

if you applied under retail category full ( 4,000 ), shares then you will get 1,400 shares, if you apply under non retailer category minimum 4,100 shares you will get 1,000 or 1,100 ( maximum round off )

Yes if its as you mentioned its correct but don't you see...on announcement there is a mess...

Non Retailer Category - Basis of Allotment
up to 1000 shares - 100% (how come up to 1000 under this category)

More than 1000 Shares - 1000+3.057257%

Gaja wrote:well i understood this way

if you applied under retail category full ( 4,000 ), shares then you will get 1,400 shares, if you apply under non retailer category minimum 4,100 shares you will get 1,000 or 1,100 ( maximum round off )

I too happen to think this way considering that "up to 1000.........." must be changed as "Minimum 1000+3.xxxx% of balance", but all these big heads are incapable to communicate their ideas.

CSE Today wrote:

Gaja wrote:well i understood this way

if you applied under retail category full ( 4,000 ), shares then you will get 1,400 shares, if you apply under non retailer category minimum 4,100 shares you will get 1,000 or 1,100 ( maximum round off )

Yes if its as you mentioned its correct but don't you see...on announcement there is a mess...

Non Retailer Category - Basis of Allotment
up to 1000 shares - 100% (how come up to 1000 under this category)

More than 1000 Shares - 1000+3.057257%

I also got confused the way it reported, specially in the papers then i did the calculation to see if you applied for 4,100 shares whether u will get more than the person who applied for 4,000 shares ( retailer ), because balance available on the unit trust also given to the retailer category

Number of shares applied is not the only definition of Non-Retailer category if I can remember. Any institution applying for shares regardless of the number of shares is considered as a Non-Retailer as far as I can remember.

I'll check up the sources for this and post it later.

DK wrote:Number of shares applied is not the only definition of Non-Retailer category if I can remember. Any institution applying for shares regardless of the number of shares is considered as a Non-Retailer as far as I can remember.

I'll check up the sources for this and post it later.

If i am not mistaken if u applied 3,000 shares or Rs. 100,000 whichever is higher then you will be considered as retailers ignoring the fact whether an individual or company

AMENDMENTS TO CSE LISTING RULES
The Securities and Exchange Commission of Sri Lanka has directed the CSE to amend the Listing Rules, to incorporate the following in relation to
the Basis of Allotment (in the case of an IPO), with immediate effect.
Rule 3.1.5 – Basis of Allotment
(a) Subject to Rule 3.1.5 (b) the number and/or percentage of shares to be allotted to the public, employees, financial institutions etc. by
category and the manner in which the allotment is to be carried out. Where there is or is to be more than one class of shares (Other Class of
Shares) in issue, like particulars shall be given for each additional class in accordance with these rules and subject to Rule 3.1.5 (b).
(i) A minimum of 40% of the offered shares of a particular share class, in an initial public offering to be initially made available for
allotment to retail individual investors ( Retail Individual Investor category).
‘Retail Individual investor’ shall mean an individual investor who subscribes for a maximum of 3,000 shares or a value of not more
than Rs. 100,000/- in a particular share class, whichever is higher.
(ii) A minimum of 10% of the offered shares of a particular share class, in an initial public offering to be initially made available for
allotment to Growth or Balanced Unit Trusts operated by Managing companies Licensed by the SEC to operate such unit trusts,
where such unit trust comprises of not less than 500 unit holders resident in Sri Lanka who together hold at least 50% of that fund
(Unit Trust Investor Category).
(iii) In the event of an under-subscription in the Unit Trust Investor Category, the Retail Individual Investor Category shall be given
first priority in allotment of the under-subscribed shares.
(iv) In the event of an under-subscription in the Retail individual Investor Category, the Unit Trust Investor Category shall be given
(v) first priority in the allotment of the under-subscribed shares.

There certainly is an issue here!
As you have said, non retail category cannot have 'up to 1000'
Let's wait till someone interested calls and checks or they rectify it.
As for me, I only applied 200. so it should be 100

This is too much complex to understand.

I have applied for 2000 shares. Can some one tell me how much I will get under this allotment basis.

sanjeewa88 wrote:This is too much complex to understand.

I have applied for 2000 shares. Can some one tell me how much I will get under this allotment basis.

700 shares, in maximum case 800 shares

There is confusion because, as there price is 25.00, up to 4000 nos share applications should be considered as RETAIL. But when allocating their base has been 100.

Thanks ishnet, that 's what I was looking for

"(i) A minimum of 40% of the offered shares of a particular share class, in an initial public offering to be initially made available for allotment to retail individual investors ( Retail Individual Investor category).
‘Retail Individual investor’ shall mean an individual investor who subscribes for a maximum of 3,000 shares or a value of not more
than Rs. 100,000/- in a particular share class, whichever is higher."

Hiru wrote:

Gaja wrote:well i understood this way

if you applied under retail category full ( 4,000 ), shares then you will get 1,400 shares, if you apply under non retailer category minimum 4,100 shares you will get 1,000 or 1,100 ( maximum round off )

I too happen to think this way considering that "up to 1000.........." must be changed as "Minimum 1000+3.xxxx% of balance", but all these big heads are incapable to communicate their ideas.

I too think what they mean is minimum 1000 for non retail catagory.

Simply if you have applied more than 3000 shares you are in Non-retail category. If its less than 3000 shares you applied you come under retail category.

chamith wrote:Simply if you have applied more than 3000 shares you are in Non-retail category. If its less than 3000 shares you applied you come under retail category.

up to 4,000 shares were considered as retailer ( 4,000*25 = 100,000/= ) in this case

Gaja wrote:

chamith wrote:Simply if you have applied more than 3000 shares you are in Non-retail category. If its less than 3000 shares you applied you come under retail category.

up to 4,000 shares were considered as retailer ( 4,000*25 = 100,000/= ) in this case

Now, with the above posted SEC rule...its clear Rs.100k is considered as retailers but ...again I have a problem....If a pvt limited company applied for 1000 (rs 25,000) under which category it falls...? Individual Retailer or non retailer...?

CSE Today wrote:

Gaja wrote:

chamith wrote:Simply if you have applied more than 3000 shares you are in Non-retail category. If its less than 3000 shares you applied you come under retail category.

up to 4,000 shares were considered as retailer ( 4,000*25 = 100,000/= ) in this case

Now, with the above posted SEC rule...its clear Rs.100k is considered as retailers but ...again I have a problem....If a pvt limited company applied for 1000 (rs 25,000) under which category it falls...? Individual Retailer or non retailer...?

I am not sure about it i think it will be considered as retailer give me time until the refund comes, because one of my friend having a company and they applied 4,000 shares in the company name, so will wait and see how much they allocate