sbb today, page-31

I just want to help give some perspective on this because I was also confused at first.

SBB is split into 471,738,000 shares so one share is worth 0.000000212%. So to buy 1% you would need to buy 4,717,380 shares. (Or about 1/4 of shares offered on the initial IPO)

Before SBB listed on the ASX they had 449,999,999 shares. The owners then diluted their holdings to essentially create 21,738,000 new shares for us to buy on the ASX, giving the current 471,738,000 total shares.

SO in percentage terms they only made 4.61% of their company available to new Aussie IPO buyers (21,738,000 / 471,738,000)

Because this is quite a small amount to list (which is a good thing for holders) they then promised to escrow (put aside) 190,800,000 of their own shares for 6 months as a show of faith that they weren't going to just list and then dump on the market. But when those 6 months were up suddenly the supply side became potentially huge - that was when we saw the price decrease rapidly.

190,800,000 new shares could be traded. That is about 9 times more shares than originally available to trade (remember IPO gave us less than 5m shares). So even if holders of these 190m shares only cashed in a little each say 2.5% of their entire holding, this would have caused massive impact on the SP.

2.5% of 190,800,000 is 4,777,000. And that is almost a quarter of the total amount of shares offered in the IPO. Simple supply and demand says the price is destined to fall. So previously hardly any shares are trading each day, most people who bought at IPO would be there for the long run and not buying or selling day to day, and then suddenly a massive volume of shares come up for sale. It's only 2.5% for them, they just tell a broker I want to sell 2.5% to buy some toys, do as best you can but I want the money soon - got my eye on a new watch/car/ajcket for my wife...

If you look at the difference in volumes of shares being traded since the release from escrow at the end of May / beginning of January it's quite remarkable. The volume bars prior to then are mere specs compared to after. The benefit this brings now though is this is suddenly a very liquid stock to move in and out of, whereas before not a single stock would be bought or sold in given day, you can easily find a buyer for your comparatively small holding.

IN SUMMARY: Only 4.61% of SBB was able to be traded on the ASX up until the end of May. Then suddenly 45.05% could be traded on the ASX - ALMOST 10 TIMES MORE ON THE POTENTIAL SUPPLY SIDE. So the in pre IPO shareholders only had to sell a smidgen of their holding to completely destroy the SP in the short term. And that is from where this short term the opportunity stems from. No skin off their nose - just some cash in their pockets, but what a stir it has caused here.

If people in future ask the same question you can just copy paste the summary.

Hope that helps.