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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: KevinThompson who wrote (13791)	10/20/1999 11:16:00 PM
From: Kaliico	Read Replies (1) \| Respond to of 57584

Anyone else make 17 points in SIFY ipo ? Just wondering ? 20 more comin Satyam Infoway ADS issue oversubscribed 27 times; over 1 million shares traded (Wednesday, October 20, 1999) Our Markets Bureau in Mumbai Satyam Infoway's American depository shares (ADS) issue, with an order book of around $2 billion, has been oversubscribed approximately 27 times, making it the largest-ever oversubscription for any Indian global depository receipt or ADR/S offering. The listing took place on the Nasdaq Stock Market in the US yesterday. Satyam Infoway thus becomes the first India-based Internet company to be listed on the bourse. 'Sify' opened strong at $ 45.5 and was trading at $42 by 21:00 IST. Volumes had already crossed 1 million shares in the first 20 minutes of trading on the exchange. Satyam Infoway has now raised approximately $75 million by issuing 4,175,000 American depository shares at $18 per share. The offering was lead managed by Merrill Lynch & Company and co-managed by Salomon Smith Barney. The demand for the offering has been reported to be strong right through the roadshows, with the price being revised by 30 per cent by the third day of the roadshow, Amit Chandra, co-head, investment banking, DSP Merrill Lynch said. The original price offer was in the $12 to $14 range, which was later raised to the present level. Satyam Infoway has granted the underwriters an over allotment option to purchase up to an additional 6,26,250 ADS within 30 days following the pricing of the offering. About 250 institutional investors had participated in the bidding process with well over 100 institutions having been allotted shares. One fourth of the total $2 billion is reported to have come through retail investors, which works out to approximately $500 million. Of the institutional demand, 75 per cent of the demand came through the Asia and US markets, sources said. Post issue the equity structure of Satyam Infoway will have Satyam Computers holding 59 per cent of the equity, CDC 17 per cent, Sterling Computers 2 per cent and an ESOP of 4 per cent, with the balance coming through institutions and retail investors. Welcoming the listing, Frank G Zarb, chairman and CEO of the National Association of Security Dealers Inc and the Nasdaq--Amex Market Group which operates Nasdaq said, "The listing of Satyam Infoway on the Nasdaq Stock Market will provide investors an opportunity to invest in a company with a truly global outlook. Nasdaq is the home for all dynamic companies and we anticipate an enthusiastic response to Satyam's offering. Satyam Infoway is the latest addition to the over 440 non-US based companies listed on Nasdaq, which is more than any other market". John Wall, president of Nasdaq said, "Satyam perfectly fits with our group of companies on the Nasdaq. The tremendous interest that the issue has managed to evoke from retail investors clearly shows that investors in the US not only recognise the potential of Indian Internet companies but also understands that they are led by quality managements." Satyam Infoway is the largest private national Internet Service Provider in India catering to more than 87,000 Internet access subscribers and over 300 corporate customers as of September 1999. The company's products and services include consumer Internet access services, corporate network, and technology services on line portal and content offerings. The company's largest shareholder is Satyam Computer Services, one of India's leading information technology solutions providers. The proceeds of the issue will be used for setting up infrastructure such as international gateways, building portals, brand-building and acquisitions.