BNS.PR.M : Underwriters Exercise Entire Overallotment

I guess the headline really says it all! Scotia has announced that:

a syndicate of investment dealers led by Scotia Capital Inc. have fully exercised the over-allotment option to purchase an additional 1.8 million, 4.50% non-cumulative Preferred Shares Series 15 of the Bank at a price of $25.00 per share. It is expected that the closing for the additional 1.8 million shares will occur on April 17, 2007. After the closing of the additional shares, when combined with the existing 12 million shares, there will be a total of 13.8 million of the Preferred Shares Series 15 trading on the Toronto Stock Exchange under the symbol BNS.PR.M.

This issue was announced March 21 and closed April 5

2 Responses to “BNS.PR.M : Underwriters Exercise Entire Overallotment”

  1. Drew says:

    I’m not sure I understand your point about the headline. The fact that they are exercising the greenshoe tells me only that it is more profitable for them to cover their short position by taking down from treasury than buying in the market. But it seems to convey no more information than that. I sense I a missing the point you are trying to make. Am I?

  2. jiHymas says:

    No – you’re not really missing much of anything, Drew! All that this is saying is that the underwriters were able to sell 13.8-million shares, not just 12-million. I’m reporting the information only because it means the issue size is even larger than initially expected.

    I didn’t really have many words of wisdom to convey beyond the bare fact that the entire greenshoe was exercised, that’s all.

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