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October 24, 1988


By CBR Staff Writer

Vodafone group Racal Telecommunications Plc, whose shares are due to start trading at lunchtime tomorrow, October 26, says it received 58,000 applications for 252m shares, with the UK public offer seven times oversubscribed. Approximately 200m ordinary shares were offered – 20% of the enlarged share capital – which will raise UKP340m for parent Racal Electronics Plc. Three quarters of the shares were set aside for existing Racal shareholders on the basis of one share for every 4.4 shares or UKP11.5 loan stock held, the remaining 50m is going to the US and Europe and 14m, made up of any shares not taken up in the shareholder offer, to the British public. There was a 77% take up from 23,000 shareholders applying for their pro rata entitlements. There were also applications for 39.5m shares in excess of pro rata entitlements, while applications for 96.8m shares were received in the public offer. Racal says the pro rata applications will be met in full, of the balance 14m shares will be allocated to the public offer, 15m will meet additional demand from Racal shareholders both in the UK and overseas. There was substantial overseas demand and 60m will be sold internationally, 43.4m in the US and 16.6m in Europe. Because of the high public demand in the UK the allocation will favour existing shareholders and members of the public applying for smaller amounts. Public applications for 200 shares will be met in full, but if you applied for 200,000 or more you will receive a mere 5% of the requested amount. The shares should open at a premium of 15 pence to 20 pence on the offer price.

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