AX Investments plc - Allocation Policy

On 4 March, AX Investments plc published its allocation policy in connection with its recent €40 million bond issue. The issue was heavily oversubscribed and therefore applications at the pre-placement and general public offer stages had to be scaled down drastically. The allocation policy is as follows:

 

i) Existing Bondholders: The Company received €10.03 million worth of applications from existing bondholders representing 86% of the outstanding amount. These applications were met in full.

ii) AX Group employees: AX Investments received applications amounting to €939,500 from such preferred applicants. These were also allotted in full.

iii) Conditional Private Placing Agreement: AX Investments allocated €6 million to Charts Investment Management Service Limited in terms of the agreement.

iv) Pre-placement: The Company received applications worth €58.8 million against the €10 million on offer at this stage. As a result, the Company satisfied 17% of all applications at this stage. 

v) General Public: At this stage, AX Investments received 5,397 applications for Bonds totalling €57.8 million compared to the remaining balance on offer of €13.03 million. As a result, the Company will be satisfying the first €1,000 and allocating a further 14.473% (rounded to the nearest €100) for any remaining balance.

 

The announcement also noted that interest on the bonds will commence as from Friday 7 March whilst refunds of unallocated monies will be made by Monday 10 March 2014. The Bonds are expected to be admitted to the Official List of the Malta Stock Exchange on Monday 17 March with trading expected to commence the following day, that is Tuesday 18 March.