Ann: Trading Halt, page-251

1. So basically the underwriters finance the offer and sometimes get paid in part shares part cash so they collect shares this way.

2 Because they are the underwriters/brokers the also are responsible for issuing all the shares and any shortfall becomes their responsibility or problem. They can choose to keep the shares and sell on market.

3. The underwriters may decide to withhold some shares from issuance and keep in their possession to sell on market for a better price..

It all depends on the contracted deal between the company and underwriters but as we’ve seen many times on the ASX the underwriters/brokers are greedy little ants who wreak havoc on the market to get their dough..

Also in the reverse, they may also decide to keep some shares and ride the P&D down by shorting which they also collect commission for lending the shares out, so they benefit on the way up and benefit on the way down as well. It’s all engimeered.

But of course if you ask it’s all denied!!

Make sense?