Another cosmopolitan day dawned last Wednesday when I received an alert text message from the local securities market. I was overpowered by the excitement...Peeling my fingers away from my eyes, I almost shouted out in ecstasy when I scrolled down to read the message...
It wasn't long ago that I began to toy with the idea about investing in the stock markets... It was a trite understanding on my part, believe it or not - but the prospect of instant wealth is simply too much to resist.
Anyway, from the message it said that out of the 10,000 shares I applied for; I am accorded 43.91 percent. This came as both good news and bad news for me.
Suddenly, I found myself transitioning from a cheering lunatic to an indifferent fool. Because on one hand, I was hoping that I could get allocated the entire lot. On the other hand, I am also worried that the mounting positive response on the IPO might bring the share's market value into a plateau sooner than you could say "Show me the money!" *nudge-nudge...
You see, the entire Initial Public Offering (IPO) yielded so much attention that come close date it was reported 15.4 percent oversubscribed. This is suppose to be a good thing, by the way!
The said IPO was heralded as one of the most successful and obviously, the biggest and most commercialized sensation that the securities market here in Oman has ever witnessed.
As far as figures are concerned, the event bested the last IPO to about 57%, roughly translating to 61.34 Million USD in subscription capital!!! The allocation report, poured down all over the country where 5.3 percent of the total applicants was probably pounding their chest in protest as news that their application was denied. I was one of the lucky few that got awarded.
I really should be happy, but I was stumped as I thought about how all those unrealized capital would definitely be channeled somewhere... the question is... where?
If the corporations' appetite remains in gear, the money could get plowed back into the market as they secure their investment targets come the final quarter of the year. This means yahoo for me!
Now, if the anxious public's imagination gets overactive and started to snowball the stock too soon, the market value of the stock could be jeopardized. Which will mean, Boohoohoo-hu-hoo!
As I write this, the stock is being traded on the "Gray Market" at 25 percent of the IPO value; the sentiments of the public is on the rise... The official listing date for the stock is suppose to be on October 28 which would mean that if this gray market carnage pushes on, the stock might not realize the its full value.
The thrill of the game is short lived for me as my illicit felicitations now turn into a horrific waiting game. Knowing the caliber of the trading public in this country, my dreams of fortunes, might be a heartbeat away from a total loss...
I'll be doing a part three on this saga soon.... In the meantime... keep those damn fingers cross will ya!
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