THE A$600 million (about HK$3.2 billion) float of Australia's Seven Network has closed a week early, with institutional investors preparing for cuts of 30 per cent or more in their allocations.
The float closed on July 30 instead of August 6 after overwhelming demand.
Oversubscription estimates suggest that institutions have asked for shares worth more than $700 million - more than twice what they are to receive - and that total applications have reached $1 billion.
The shares, with a $2 issue price, will begin trading on August 12, with brokers forecasting that they will open at $2.40 to $2.60.
The news came as the Australian stock exchange's chief economist, Michael Heffernan, revealed research showing that shareholding by individuals had exceeded 30 per cent of market capitalisation, or $60 billion, for the first time.
He estimated that household shareholding had increased by $8 billion to $10 billion since the September quarter last year.
Announcing the float closure, Seven chairman Ivan Deveson said it would offer 35 per cent, $160 million, to the public, up to $290 million to institutional investors and the rest to the strategic partners News Corp, which holds 10 per cent, and Telecom Australia, 15 per cent.