Infy ADS priced at 3% discount over Nasdaq closing rate
Infosys Technologies has priced its secondary ADS issue at $53.50 per ADS, which is 3.2% discount over its Nasdaq closing price on Monday of $55.27, while being at a 6.8% premium over underlying common domestic share.
By TNN |
BANGALORE: Infosys Technologies has priced its secondary ADS issue at $53.50 per ADS, which is 3.2% discount over its Nasdaq closing price on Monday of $55.27, while being at a 6.8% premium over underlying common domestic share.
The aggregate size of the offering exceeds $1.6bn. The Infosys ADS also got an overwhelming response. As against its maximum limit of 30m, over 84m shares were tendered from both individuals and institutional investors.
Commenting on the response to the offer, Infosys CFO V Balakrishnan said, “We very clearly communicated to the shareholders on the nature and intent of the issue with the long term aim of getting into the Nasdaq 100 index.”
Infosys will not receive any proceeds of this offering and the net proceeds after the offering expenses will be distributed to the selling shareholders within 30 days of the closing of the offering on November 17. There were 3,477 valid offers for 84.03m shares as their combined holding was 246m.
The proportion of the tendered shares to be accepted will based on the guidelines of RBI, which will be based on the stake held in the company by the tenderer. Balakrishnan said the discount on the ADS was to strike a balance between new investors and existing one who are selling, adding that it was a normal practice.
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As part of this offering, five lakh ADS will be placed with the Japanese investors through a public offer without listing. The Infosys CFO said that Japan is a critical market for them as the country is the second largest IT market as well as the third largest capital market, globally. Infosys is also looking at building its brand equity in the Japanese market.
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