The wellcome share offering: Part two: Technical execution

Paul Stonham

European Management Journal, 1993, vol. 11, issue 3, 291-303

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.

Date: 1993
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