MORTGAGE SHARES

Hawke's Bay Tribune, Volume XXV, Issue 154, 15 June 1935, Page 5

MORTGAGE SHARES

Big Flow of Applications

SUBSCRIBED THREEFOLD (By Teiegraph-Pre«« Association.) WELLINGTON, June 15. It was announced by the Acting Minister of Finance, the Hon. Adam Hamilton, yesterday afternoon that the share capital—£soo,ooo—of the corporation for public subscription was well over-subscribed. The total number of applicants exceeded 6300, and £1 shares to the number of 1,780,000 were applied for this being over three and a half times the amount on issue. Allotment of shares has been determined, and with the exception of applications for shares aggregating less than one hundred the allocation necessarily is much below the number applied for.

Commenting on the excellent response the Minister said it was a meet gratifying one, and could be taken as a clear indication of the widespread support to the establishment of the institution.

The applications in the majority of cases were for shares for a lesser number than 100, anfi consequently enabled the Minister to adhere to the desired policy of spreading the holdings among a large number of small shareholders rather than a small number of large shareholders. This policy, stated tho Minister, was also observed in connection with the Reserve Bank share issue, and provides that a greater number of investors throughout the Dominion as a whole will have an interest in the welfare and future of the corporation.

The result achieved in the successful flotation of the share issue has been contributed to by the valuable assistance and co-operation extended by the various trading banks and members of the Stock Exchanges throughout the Dominion, to whom the Minister desires to extend his thanks. Mr Hamilton intimated that with 6300 ehareholders the average holding is thus approximately 80 shares. Allotment letters had been issued to shareholders, and in conformity with the policy as above mentioned the allocation had been made on the following basis Shares applied for, 5 to 90, in full; 91 to 500, 90; 501 to 1000, 100; 1001 to 1100, 149; 1101 to 2500, 150 ; 2501 to 3500, 180 ; 3501 to 4000, 190 ; 4001 to 5000, 200.