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A gap has developed.....a lot of HK brokers aren't mandated to buy AIM shares so this is choking demand. At the same time plenty of UK brokers are force selling due to corporate actions (mine was going to force sell the buy I made on Tuesday by Thursday until we had a little chat)
This sell off will soon wash through but in the meantime it presents an opportunity where the risk profile of the relisting transaction is less than the potential reward. Hence me buying a few more this week
Not much we can do about it now. Dealings through Hargreaves lansdown are at an end so it’s a 4-8 week wait and be hopeful the ipo is warmly welcomed
This latest news article, from the perhaps less than independent newspaper, paints a rosy picture of HK IPOs so could have caught a perfect storm to reboot CNEL
https://www.scmp.com/business/companies/article/3092258/hong-kong-stocks-mixed-market-bulls-weigh-ipo-outlook-fallout
It is somewhat of a concern that the gap is so large between what we have finished on today and what tomorrow could/should bring.
It really feels like a head scratch moment, because as you describe Slimmis you think there would be a few people looking from HK at this price and buying up considerable amounts given the obvious discount.
I’m glad Aim for me is over with this share and I shall now sit and wait.. this share has real prospects given its clearly able to deliver substantial profit, hopefully it has some special contract reveals up it’s sleeve to help transcend this on to its full potential.
I suspect many trading platforms will have stopped trading. HSBC only allows to sell now but that will probably end today. Therefore the option to buy tomorrow is probably not possible for most even if the price announcement is far ahead of the current price. we will see.
It does seem odd that professional traders have not been buying up the forced sellers but at the same time until there is confirmation on admittance and the price on HK there is not actually a real arbitrage situation. If the move is confirmed tomorrow hopefully then you might then expect traders to buy because in 4 business days time they will be listed for more and that would seem logical so tomorrow if the price is announced this should spike much higher, not least the MMs we reprice. My instincts many months ago was that the price would fall between the prospectus and the move because of all the small and forced sellers but did actually expect the price to hold because i also thought other investors from HK would buy them up at the discount or even for CNEL itself to acquire shares. Little of that appears to have happened so it does make you think about the BOD as surely the price in the UK should have been closer to the prospectus price in HK so that the latter investors see fair value. Personally if i was in HK and could see i could buy in the UK for half price why would i invest at twice the price? The answer is probably that larege investors know they cannot buy any meaningful shares on AIM and this is the only way to buy serious shares. Therefore i hope the BOD had already secured cornerstone investors already at the bottom end of the spectrum and then other investors would bid that up. However given all the costs involved i did think the BOD would have some methods at its disposal to narrow the gap but at the same time it would have been seen as insider dealing so can also see why the share price has gone lower because the only buyers and sellers are pis. on a more positive note once we get confirmation tomorrow and price does anyone have an idea when the first trading update will be as that will be a key date for the calendar.
1750mk1, I for one can't trade CNEL any more in my AJBell account (nor buy or sell). I get "Instrument not found" every time I try to get a quote. I wonder if more investors are facing the same problem and therefore are not able to buy (and hence the market can't take up the slack!)
I get why some PIs would be selling... it's why the market isn't taking up the slack if the offer is being taken up at twice the price. Unless it isn't.
with ii you can trade online as normal after they make the cross border move... dep on your account the cost per trade goes up from 3.99 to 9.99
On a personal level no I haven't had experience, from what I have gathered on here through people sharing their interactions with brokers, it seems like several things are in play:
1: They are forced to sell up as the broker refuses to hold them. (Probably driving the dip in price), for some reason a few brokers forced this based on a deadline date of the 8th rather than the 14th. Barclays were one of these
2: You can trade them in HK but you have to wait 3-6 weeks for certificates to arrive first, and the cost goes up as you have higher telephone sales costs A J Bell, II etc
3: They will lodge the shares with another third party broker and then they can be traded at a higher costs (HSBC have been named a few times)
4: Your broker will hold the shares but you can trade until you move them to a broker than can sell
5: Open a broker account in HK such as Silver Bricks (Then trade online)
3: Sell them yourself ahead of the move.
Millsm are you (or anyone) aware of any AIM companies that have completed the move to HKEx in the last year or so to check if there was a similar price dip prior to the move or is CNEL a first?
It's literally the case that this could well be worth double this time next week and its the last chance to get in before the SALE ends. Good Luck All as the clock is working in our favour now as the closer to the move deadline the more solid this gets. The discussion about the opening offer price started yesterday and they should know roughly where it will be. If this is looking like its not going to happen wouldn't the BOD be obligated to announce something as they have obligations under AIM still. I suspect its just a waiting game now until the 14th when it gets reported at the close of play on AIM, ready for a big shiny opening on the 15th in Hong Kong.