Raslag IPO is today

Raslag [ASLAG 2.00], the third renewable energy-themed IPO will hit the PSE over the past six months, will ring the opening bell and begin active trading this morning after a quiet, oversubscribed IPO offer period.

Of the P805 million that was raised in the sale, ASLAG will receive P700 million in exchange for the sale of the 350 million primary shares it sold, and the remaining P105 million from the proceeds of the secondary share sale will be used to finance ASLAG’s stabilization fund.

Neither ASLAG nor the IPO’s underwriter, China Bank Capital (a subsidiary of China Bank [CHIB 26.95]), have made any statements about the take-up of ASLAG’s shares.

MB BOTTOM-LINE

Long-time readers and followers of the market will know that this kind of pre-IPO silence on the potential over-subscription of an IPO is a relatively recent phenomenon.

It used to be quite common for the underwriter and representatives of the company to hype things up a bit over the weekend before an IPO by dropping thick hints about how quickly shares sold out, or speculating about how many times oversubscribed the offering will be once it actually lists.

All I have to go on now is the feedback of Barkadans, and I have to say, you really came through on this one.

I had 129 Barkadans respond to the ASLAG IPO Allocation Poll.

Those 129 investors reported receiving an aggregate of P5.5 million worth of ASLAG’s IPO stock, out of a total request amount of P18.2 million. That’s just a 30% allocation rate.

Only 50% of all the reported requests were satisfied as requested.

As we have discussed before, IPO shares are split into buckets (technically, they’re referred to as “tranches”), with the largest bucket set aside for institutional investors (government funds, private investment funds, and wealthy people), the second-largest set aside for sale through all of the PSE’s accredited brokers, and the smallest bucket for the PSE’s retail investor sales platform, PSE EASy.

While I don’t have any data on the institutional bucket, the self-reported data that I do have says that investors that requested through their brokers only received 23% of their requested allocations on average, while investors that requested through the PSE EASy platform received 74%.

That’s a large discrepancy, but one that has become very consistent for offerings that are this popular.

According to my own self-reported metrics, the ASLAG’s broker bucket was 4.3x oversubscribed, and its PSE EASy bucket was 1.3x oversubscribed.

Keep in mind that I don’t have any information at all for the institutional bucket, which is the largest part of this IPO, and all the information that I do have is self-reported.

Thank you again to each and every one of you that responded to the poll.

I invite anyone that enjoyed this information to click this link and let me know their information for the upcoming VistaREIT [VREIT 1.75] IPO in the VREIT IPO Allocation Poll.