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Biglari Holdings Inc. Message Board

  • muhammetal muhammetal Sep 25, 2013 12:16 PM Flag

    Why does the % vary on the Oversubscription?

    I don't get why the percentage allocation of the oversubscription would vary, other than due to rounding to whole share amounts. Shouldn't anyone partaking in the oversubscription be filled at the same rate? The prospectus says pro rata, which I understand to mean that everyone oversubscribing gets an equal allotment on a percentage basis. Most people appear to have been allocated at around 12.5%, but I got filled at 10% even though I fully subscribed and oversubscribed. I appreciate any thoughts on this before I start bugging my broker about it.

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    • If you had 10-11 rights, you would only get 1 oversubscription and maybe the same for 12-13.

      But, if you had a much larger position, it should be in the 12-12.5% range.

      Fidelity is showing my cost basis on my 8 regular rights shares is $258.375 rather than $265. And Im not clear on how much I was charged exactly. I paid either $265 or $258.375 and Im not clear on which.

      So if Fidelity could screw my cost basis up and/or undercharge me, Its possible you didn't get as many rights shares as you were entitled to.

      Would have expected an 8k by now giving the pro-rata details. And the exact cut off.

      I know I didn't get an oversubscriion for 4 rights but did for 8. Would I have for 5.6 or 7 ?

      Let me know what you find out.

      • 2 Replies to smaycs4
      • Don't you just love doing business with Mr. Biglari? He always makes things so simple and clear for his investors

      • I came into it with 250 shares = 250 rights, I fully subscribed and fully oversubscribed and had enough cash to cover both. The result was 50 shares per the regular sub, 5 shares per the oversub = 10% fill rate. It can't be explained by rounding, because 50*12%=6. I called the offering information agent, but they didn't know. I have asked my broker, but they don't seem to know. I sent an email to owner@steaknshake but don't really expect an answer. It seems odd to me that Phil and Cooper got filled at a higer rate than Big or the Lion Fund, and yet I got a lesser percentage than all. As stated before, I would expect a pro rata fill would mean everyone gets the same percentage. The variation seems random.

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