Bangkok--Nov 9--SET
SETTRADE.Com wasis chosen to perform the share allocation of MCOT Pcl. shares to retail investors for MCOT Pcl. using athe progressive grouping. The allocation procedure will be conducted usingwith modern and efficient computer software, hence assuring that the shares will be allotted with transparency, on Nov. 8.
The SETTRADE’s CEO, Mrs. Chanisa Chutipat, disclosed that SETTRADE was chosen to perform the share allocation for MCOT Pcl., the first state-owned enterprise to raise fund by listing on the Exchange and distribute its shares using the progressive share segmentation as prescribed in the Cabinet Resolution on April 7. The share allocation procedure will randomly allot the entire share amount that has been offered to the public with no single one shares reserved for any privileged persons. Like the general retail investors in general, the customers of financial institutions and the securities companies will also have to subscribe to the MCOT’s shares through the same process. MCOT Pcl. has become the first state-owned enterprise to raise funds by listing on the Exchange. using this Cabinet-mandated method in allocating its shares.
“We at SETTRADE feel very honored and delighted that the MCOT is relyingies on us and use our system to randomly select the share subscription forms by using the progressive grouping process. This process is being used to transparently allot MCOT’s 48.4 mln. shares into the public’s hands. An additional 13.5 mln. shares, used for Green shoe option, will be evenly distributed to the subscription forms that have not received any stock after the first round of share allocation, remain unallocatted with each form receiving for 500 shares each. This therefore confirms the trustworthiness of SETTRADE’s computer system and its share allocation process in terms of their efficiency and transparency. It also guarantees that the public offering will be equitable,” SETTRADE’s CEO said.
SETTRADE will conduct the random selection, under the progressive grouping, using our computerized system and the database received from Krung Thai Bank Pcl. After receiving the files containing share subscription information, SETTRADE will examine whether the numbers onf the subscription forms and the subscribed shares correspond correctly to the underwriters’ reports. FollowingAfter that, the random selection will begin.
The rRandom selection, under the progressive grouping process,method is consistsed of 3 processes processes:
1. Grouping process
The computer system will divide theall subscribed subscription amounts shares into 3 range intervals. If the amount ordered on any one form is greater than the lowest interval, the excess will be carried over to the next interval. The ranges are::
- 1st Iinterval: for the 500 — 4,500 shares.
- 2nd Iinterval: for anythe subscribed to amount in excess ofover 4,500 shares but less than 27,000 shares
- 3rd Iinterval: for for anythe subscribed to amount in excess of over 27,000 shares.
For example, an order for 30,000 shares will appear in all 3 groups.
Processes from grouping to allocation will be done for each interval starting withfrom the 1st Intervalone until the entire amount of shares to be distributed to the public has beenare allotted.
2. Random processallocation of numbers
The computer system will randomly assign numbers to the subscription forms by randomly assigning a number from 1 — 999,999 to every subscription form. Each of the share subscription forms will thus have a different assigned number, which will not be necessarily be ordinal. Thus, less than one million numbers will be assigned.
3. Share allocation
Stock will be allocated process for to the subscription forms, using the with assigned numbers:
The system will sort the subscription forms in by ascending order.
The system will fill orders totalsum up the number of subscribed shares in by the (a) ascending order of the subscription forms and (b) by interval, starting from the 1st grouping, then moving to the 2nd, until the entire all shares available have been fully subscribed.
Thus, for example, if an investor placed an order for 30,000 shares, in the first interval allocation, he will get 4,500 shares (assuming that there are enough shares to reach his randomly assigned subscription form number). In the second interval allocation, he will get up to 27,000 shares (including the 4,500 from the first interval allotment). If there are still shares remaining, he will get the balance of his order filled.
Therefore the successful subscription forms will be those with low randomly assigned ordinal numbers, and shares will be distributed to the maximum amount of investors possible.
Then, after the whole process is completedends, SETTRADE will post the share allocation results on www.settrade.com, www.ktb.co.th, and www.mcot.net. Subscribers of MCOT’s shares can then check whether their subscriptions have been successful by just entering either the numbers on their subscription forms or their ID card numbers on those websites. They can also call MCOT’s information center for public offering at 0 2576-5999 and the S-E-T Call Center at 0 2229-2222.
AlsoBesides, this will be the first time that investors will be able tocan check their share subscription results using theirthrough the cellphone’s SMS capability. By sending either their 10-digit ID card numbers or the 13-digit numbers on their subscription forms to 4 800 900, they will immediately know the subscription results. They will be charged THB 3.00 per message (The results will be available no later than 12:00 hrs. onf November 9, 2004). End.