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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: Crazy Canuck who wrote (132)	3/29/2000 10:54:00 AM
From: keith massey	Read Replies (2) \| Respond to of 960

Thought this answer from the Stockhouse thread was important. how do you know......."every GEM IPO so far has been oversubscribed." If you go to the GEM's exchanges website (Growth Enterprise Market - hkgem.com you can read the prospectuses and allotment results from each IPO since the GEM exchange was started. Another good source to read the news articles written about each IPO is insidechina.com. You will discover that almost all the GEM IPOs had massive over-subscription. For example, on March 1/2000 Tom.com (8001) went public on the GEM Exchange the shares were oversubscribed by a staggering 669 times. The most recent IPO on the GEM exchange was SunEVision Holdings (8008) which was co-managed by Tia Fook and ICEA Capital, the same underwriters taking SEG to an IPO. SunEVision received 382,371 valid applications for a total of 6.54 billion shares, equivalent to about 218 times of the 30 million public offer shares.. The private placing part was 55 times subscribed. In each case, the companies had an over-subscription offering mechanism built into the prospectus. Due to this over-subscription the companies ended up raising the IPO price of the issue to the high end of the issue range and exercising the over-subscription allotment to issue more shares. This resulted in each company raising significantly more money than initial announced. I asked Mr. Chu about the possibility of an over-subscription of the IPO and was told that they already planned to have that incorporated into the IPO. So although the company has announced that they are raising $40 million US in the IPO it is likely that they actually raise significantly more than amount. I asked if raising $50-60 million US was a possibility and was told that that figure was not unreasonable. I was also told that even with the over-subscription option the company still plans to hold a minimum of 51% of the shares of SEG. If the company does end up doing an over-subscription and raising the issue price like all the majority of other GEM IPOs you can throw my pre-IPO asset value estimate of $155-$185 million right out the window because it will be substantially higher Message 13234937 SEG is partners with leading brokers throughout Asia and is also partners with the brokerage firms underwriting SEG (ICEA and Tia Fook). It is these brokerages firms job to recommend stocks to their clients for purchase. What stock do you think they are going to recommend come SEG's IPO date?... a large over-subscription sure wouldn't surprise me. Best Regards KEITH