First 10 minutes trading not normal
AMP sets the price for shares bought and sold in its pre-listing trading facility.
Sunday, June 21st 1998, 12:00AM
AMP says the price for shares traded in its pre-listing "facility" was A$18.70.This is the price shareholders who sold their shares through the facility will receive. It is also the relevant price for policyholders who applied to buy A$1000 of shares through the facility. These policyholders will receive 52 AMP shares each.
The facility price was calculated by taking the base price of A$16 and adding half of the amount by which the volume weighted average market price of AMP shares in their first week of trading was higher than the base price.
AMP excluded in this calculation shares traded in the first 10 minutes after listing as it considered this period of time was not a "normal market".
It said in its prospectus that AMP reserved the right to exclude any trades that, in its judgement, did not constitute a normal market.
All transactions on the New Zealand and Australian Stock Exchanges in the first 10 minutes were excluded
"AMP believed that the opening 10 minutes of trading in AMP shares did not reflect a normal market," chief financial officer Paul Batchelor says.
"Excluding 10 minutes of unusual market activity in setting the facility price is appropriate in the circumstances," he says.
In that first 10 minutes the volume weighted average price was around A$25.66, and involved 7.1 million shares.
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