IPO - Li-S Energy Limited - 30 August 2021 #, page-371

It's surprising (yet welcome) that priority shareholders appear to have been scaled back to less than 30% of their application amounts yet there seem to be shares available to applicants through the public offer. This amount seems to be 3,000 shares which was the minimum subscription amount. One would also have thought that the institutional and broker components would have been well oversubscribed as well so why were these shares made available?

This could be part of endeavours to be fair to all applicants as allocations are at the discretion of the company.

It could also be related to why there has been a delay in the IPO process. There is a requirement to have a certain distribution of shareholders and the following table summarises what that requirement might be:



Allocating 3,000 shares @ 85 cents ($2,550) to public applicants helps build the minimum investor numbers as the unrelated party percentage is quite low in Li-S. The ASX may have required Li-S to boost the investor numbers and that could explain the delay in the process of allocating shares given applications closed early but the process didn't seem to start until quite a bit later.

Once there is a delay it can easily extend by two weeks because the listing committee (or who ever approves the listing) would probably only meet that often.

All conjecture, but once approval comes through it will all be forgotten and there will be other things to talk about and bigger fish to fry.