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zuteilungsfähige Nachfrage

English translation: genuine demand

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:zuteilungsfähige Nachfrage
English translation:genuine demand
Entered by: Ralf Lemster
Options:
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13:51 Sep 10, 2001
German to English translations [PRO]
Bus/Financial
German term or phrase: zuteilungsfähige Nachfrage
From a German financial document regarding an IPO:

"Wir streben eine ***zuteilungsfähige Nachfrage*** von EUR XXX an."
Lee Penya
Local time: 02:09
genuine demand
Explanation:
"We aim to generate genuine demand in the amount of € XXX."

IMHO one should read between the lines here. The fact that they're talking about allocation would indicate that this refers to a deal that is to be executed using a bookbuilding procedure (you should be able to ascertain that). One of the major issues with this technique is the frequent occurrence on non-genuine subscriptions in the book (IOW people inflate their subscription order in order to purchase a certain quantity of shares, even in the event of repartition). From the lead manager's (and issuer's) point of view, this may create a problem if allocation is carried out in full: this may trigger immediate selling in the secondary market. This was illustrated recently when Deutsche Bank sold 44m shares in Deutsche Telekom (admittedly not an IPO, but apparently using a similar bookbuilding technique): investors were surprised at getting the full quota they had subscribed, and went to dump the shares straight away.

HTH - please let me know if you need some more background.
Selected response from:

Ralf Lemster
Germany
Local time: 09:09
Grading comment
3 KudoZ points were awarded for this answer

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Summary of answers provided
5genuine demand
Ralf Lemster
4allocable demandKlaus Dorn
nainitial public subscriptiongangels


  

Answers


4 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
allocable demand


Explanation:
I used to think allocable is only "Zuordnungsfaehig", but my dictionary just told me that it is also "Zuteilungsfaehig".

Klaus Dorn
Local time: 11:09
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in pair: 1514
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5 hrs
initial public subscription


Explanation:
We envisage an initial public subscription of EuroXXX

gangels
Local time: 01:09
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in pair: 5508
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8 hrs   confidence: Answerer confidence 5/5
genuine demand


Explanation:
"We aim to generate genuine demand in the amount of € XXX."

IMHO one should read between the lines here. The fact that they're talking about allocation would indicate that this refers to a deal that is to be executed using a bookbuilding procedure (you should be able to ascertain that). One of the major issues with this technique is the frequent occurrence on non-genuine subscriptions in the book (IOW people inflate their subscription order in order to purchase a certain quantity of shares, even in the event of repartition). From the lead manager's (and issuer's) point of view, this may create a problem if allocation is carried out in full: this may trigger immediate selling in the secondary market. This was illustrated recently when Deutsche Bank sold 44m shares in Deutsche Telekom (admittedly not an IPO, but apparently using a similar bookbuilding technique): investors were surprised at getting the full quota they had subscribed, and went to dump the shares straight away.

HTH - please let me know if you need some more background.


    Own professional experience in financial markets
Ralf Lemster
Germany
Local time: 09:09
Native speaker of: German
PRO pts in pair: 2684
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