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The wellcome share offering: Part two: Technical execution

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  • Stonham, Paul

Abstract

When London merchant bank, Robert Fleming and Company managed The Wellcome Trust's offering of shares on the London Stock Market in 1992, it did so in a very skilful manner. At least one notable feature of this offering was its size -- the largest fully-paid non-privatisation secondary offering of shares ever to take place on the London Stock Exchange and internationally. Paul Stonham discusses Fleming's choice of shareoffering technique -- book-building with over-allocation and a greenshoe option, an innovative technique on the UK domestic equity market. He then charts the month-by-month progress of the deal. From a number of points of view, the offering is considered successful. An attractive price was obtained, a much broader institutional and geographical spread of shareholding was achieved, and the market was efficiently stabilised against the background of a freely-falling stock market.

Suggested Citation

  • Stonham, Paul, 1993. "The wellcome share offering: Part two: Technical execution," European Management Journal, Elsevier, vol. 11(3), pages 291-303, September.
    • Handle: RePEc:eee:eurman:v:11:y:1993:i:3:p:291-303
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