Do Banks Manipulate IPO’s Coverage?

When institutions and companies are flooded with facilities to cover subscriptions, in excess of what is available, knowing that less money will be allocated than covered, only to show the numbers, as happened, in Aqua Power case, where the collected funds totaled more than a trillion riyals.

This is both manipulation and insolence.

Individual subscriber allocation rates are also affected by this.

I’m curious how many institutional subscribers hold their allocated shares for more than a week, after the stock listing.

What is going on in our financial sector raises an important question regarding the efficiency of IPO governance.

It also raises concerns regarding the accuracy with which the order book was built, in order to establish the offering price.

What’s going on is an illusory beautifying of the degree of security need for reasons I don’t understand, or know about, but I’m positive it’s unethical.

Why is the rope left unattended to attain the coverage ratio of the total money spent by the government in a complete year?

Why isn’t a legislation put in place by the Central Bank and the Capital Market Authority to oversee the number of facilities supplied to cover a security?

I support the freedom to lend, but it should not have a detrimental impact on the value of a security, since the implications are severe, and I believe everyone knows the role that banking facilities played in prior financial market catastrophes.

It is required to create a time limit of, at least three months, for the institutional subscribers to prohibit them from selling their shares, until the market deems that the share’s value has stabilized.

We can examine the percentage of IPO coverage of the offered shares when this criterion is set.

If the subscriptions are covered, this is the case. When this condition is met, the banking facilities will be automatically disabled.

Investment and access to liquidity through money markets, as well as speculation, are the primary goals of financial markets.

This must be done without any outside influence. The underwriting ratio of ACWA Power is a sign of a fundamental issue, not a feat to be proud of.

It needs to be fixed so that it does not have a detrimental impact on our financial markets.