Q: I had 4000 shares that i tendered on the Dutch Auction but only received $9200. In view of the total under subscription, why did i not receive the full amount of $10,600
5i Research Answer:
ILLM was authorized to purchase 'up to' $40M in stock under the auction, but was not obligated (at least in terms of documentation we see) to do the full amount. It ended up only buying 8.18% of the shares, spending only $12.2M. In its press release, ILLM did not specify how many shares were tendered, but shareholders would have only received a pro rata allocation in the buyback, so in this case we can only presume more than 4.59M shares were tendered, and the difference represents this pro rata allocation.