Limit Price A bid at limit price which is the maximum price an investor is

Limit price a bid at limit price which is the maximum

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Limit Price: A bid at limit price, which is the maximum price an investor is willing to pay for a specified number of shares. In such a case, a Bidder explicitly states a price at which he/she/it is willing to subscribe to a specific number of shares. For instance, a Bidder may bid for 2.0 million shares at PKR 50/- per share. Since the Bidder has placed a limit price of PKR 50/- per share, this indicates that he/she/it is willing to subscribe at or below PKR 50/- per share. Strike Order: A bid for a specified number of shares at the Strike Price to be determined through the Book Building Process. In Strike Order the Bidder explicitly states the number of shares he/she/it is willing to subscribe at the Strike Price. For instance, a Bidder may bid for 2.0 million shares at the Strike Price to be determined through the Book Building Process. However, it must be noted that placing bid via strike order does not guarantee entitlement of shares as it is subject to time preference. Step Bid: A series of limit bids at increasing prices. The aggregate amount of step bid shall not be less than PKR 1,000,000/- and the amount of any step shall not be less than PKR 250,000/-. Under this bidding strategy, Bidders place a number of limit bids at different increasing price levels. The Bidders may, for instance, make a bid for 2.0 million shares at PKR 45/- per share, 1.5 million shares at PKR 47/- per share and 1.0 million shares at PKR 50/- per share. A SINGLE INVESTOR SHALL NOT MAKE MORE THAN ONE BIDS, HOWEVER, A BID CAN BE REVISED.
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Page 12 of 94 THE INVESTORS SHALL NOT PLACE CONSOLIDATED BIDS. A BID APPLICATION WHICH IS FULLY OR PARTIALLY BENEFICIALLY OWNED BY PERSONS OTHER THAN THE ONE NAMED THEREIN IS TO BE CONSIDERED AS CONSOLIDATED BID. Once the bid period is over and book has been built, Joint Book Runners shall determine the Strike Price. Successful Bidders shall be intimated, within two (2) working days of the closing of the bidding period, the Strike Price and the number of shares provisionally allotted to each of them. The successful Institutional Bidders shall, within seven (7) working days of the closing of the bidding period, deposit the balance amount as consideration against allotment of shares. Where a successful Bidder defaults in payment of shares allotted to him/her/it, the Margin Money deposited by such Bidder shall be forfeited to the Joint Book Runners under clause 8.11 of Appendix 4 of the Listing Regulations of KSE and under clause 8.10 of Appendix 4 of Listing Regulation of LSE. AS PER REGULATION 8.16 and 8.15 OF THE KSE and LSE LISTING REGULATIONS RESPECTIVELY, THE SUCCESSFUL BIDDERS SHALL BE ISSUED SHARES IN THE FORM OF BOOK-ENTRY SECURITIES TO BE CREDITED IN THEIR CDC ACCOUNTS. ALL THE INVESTORS SHALL, THEREFORE, PROVIDE THEIR CDC ACCOUNT NUMBERS IN THE BID APPLICATION.
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