2007-06-22 09:34:16 · 6 answers · asked by sean10930 2 in Business & Finance ➔ Investing
Blackstone had x number of shares that it was planning to sell for the IPO. They engage brokerage firms like Goldman, Merrill, etc to help place the shares. For many IPO's this can be a challenge and is often why brokers call clients with these new "hot" stocks (because they signed up to sell them!)
Well, as it turned out, the "buzz" for Blackstone was SO great, that it had many times more people signed up who wanted shares, than the number that were being offered.
Thus, the issue was oversubscribed. And that's what happened here. Doesn't mean the stock will do well or badly, just that there was more interest initially than there were shares.
Hope that helps!
2007-06-22 09:39:03 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 1⤋
Well what it means is that the underwriters had orders for 7 times the number of shares being offered, however, these are orders that can be cancelled before the offering goes public, which I think happened in this case. If this IPO was really 7 times oversubscribed, it would have gone much higher when it opened for trading.
2007-06-23 07:39:45 · answer #2 · answered by BangkokBob 4 · 0⤊ 0⤋
Blackstone was offering 133,333,334 shares in its initial public offering. When the underwriting brokerage firms contacted their clients to offer them the IPO, they got orders for 933,333,338 shares - 7 times more than was being offered.
2007-06-22 16:48:59 · answer #3 · answered by JoePonzio 2 · 0⤊ 0⤋
If Blackstone is selling 1,000,000 shares and the rest of the world wants to buy 7,000,000 shares then Blackstone is oversubscribed seven times.
I cannot explain it any simpler.
2007-06-22 16:40:23 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It means...NOTHING.
As an investment pro....all that means is that people requested a lot more shares (for them to purchase) than Blackstone was offering for sale.
That is NOT a reliable indication of demand for the stock that is yet to be realized....why?...because, unfortunately, it is a regular practice of "brokers" (companies or individuals) to request many more shares than they can or intend to purchase for their fund/clients. They aren't supposed to .... but they do.
Invest in something because it is the right stock/industry to be investing in... at the right time... for what is happening in the political or financial worlds at the time....FUNDAMENTALS...always invest on fundaments... "trading" is "way" riskier.
2007-06-22 16:53:48 · answer #5 · answered by Anonymous · 0⤊ 1⤋
forget it and check out ptsc.ob on yahoo finance
$.55 cents per share with major league customers
2007-06-22 17:18:11 · answer #6 · answered by john g 1 · 0⤊ 1⤋