* * * * - -DEMAND FOR NEW-- ISSUES. Meanwhile, fresh
Channels for investment are _continually being provided-through new capital issues. Most of the offers of stocks Of the-gilt-edged type haVe been taken up eagerly on their first nppearance, and even in cases where the immediate response has not been altogether satisfactory, the subsequent demand for riew itoCks has te-stified to the strength-of the investment markets. An exaMple of the rapid absorption of new securities after the cOmmencenrient of dealings was pro- vided by the£5,000,000 Birmingham -Corporation 2t per cent. stock issued at 964 at the beginning Of-last week. - This stock represented the first public issue for many years of a British Corporation security carrying a rate of less than 3 per cent. Although the terms of the loan were in complete accordance with the high prices ruling for investments when, the issue was arranged, the-opening of the subscription lists coincided with the decline in gilt-edged stocks on the profit taking which was induced by the previous advance. This set-back in market value's gave the new Biriningham stock a dear appearance in comparison with Stock Exchange quotations for existing securities of similar character, and the public subscribed for only 27 per cent. of the issue. As underwriters were left with 73 per cent. of their commitments, dealings in the neiv stock opened at around 4- discount on the, issue -price. Within a week, however, the discount had been, converted into a sub- stantial premium, suggesting strongly that-the appetite of investors for " safety first " securities is as keen as ever.
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