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Woolworths public float attracts A$7b

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Sue Green

THE $A2.45 billion (about HK$12.86 billion) float of Australian supermarket giant Woolworths - Australia's largest public share float - has exceeded all expectations, attracting up to $7 billion worth of applications.

Which applications have succeeded and to what extent will be revealed on Monday morning when press advertisements will announce how many shares have been allocated to applicants.

Small investors bid for minimum lots of 1,000 shares at $1.45 a share.

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But with estimates of the number of small investor applicants ranging up to 300,000 when the float closed on July 5 - a total that would easily give Woolworths Australia's biggest share register - there are predictions that allocations may be cut to 800 or even less, rather than refusing some applicants.

Woolworths shares begin trading on the Australian Stock Exchange on Monday on a deferred delivery basis and are expected to list at $2.60 to $2.80.

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Allowing small investors to trade their shares without physically holding their certificates breaks new ground, aimed at speeding up trading and putting them on a more equal footing with the institutions.

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