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That was the last chance to escape at a decent price
Shorters took 10% of the spike in 30mins
This will drop again to the recent lows until rumour is put to rest, there's just to much uncertainty at the moment, its totally murdering the SP
They should either get on with it or say they aren't doing it, if they wasn't going to do it, they would say so and put to sleep the rumour mill
Besides those who thought they are getting the bargain of a century loading at 200p to qualify for ri's are sitting on ~27% losses already...
Marvelous
Same will happen here
Won't be pretty
Not wishing anything bad to anyone...
Just a reality check
Look at another latest rights issue play HMSO
Price dipped to 14p today when rights issue was at 15p
This is brutal
Wait for the announcement to see what will they manage to pull out of the hat...
Good Fortunes all
It looks like company is trying to hide something, moment they release the RNS stating we are raising 2.5 billions via rights issue, share price would plummet and adjust itself accordingly. I remember when Iag announced rights issue share price was steady at 200 and that was surprising.But it did fall to 90p once people realised what was coming.
Shamrock,
Thanks I am well aware
Monday 7Sep sp was 220p I mixed up two days.
Pokerchips, 36% discount to TERP where they assume that every holder will subscribe to the rights. This is is incorrect.
200p on 9Sep
Rights announced at €0.92/84p which is 58% discount. Brokers converted eur to cable with 5% fee so it worked out at 88p or 56% discount.
Running discount from TERP is nonsense
Always from the COB of the previous trading day.
Allthough they are smart writing 36% discount which doesn't look that bad on paper
Shamrock123
Reuters reported the same.....
" Shares in IAG were flat at 200 pence at 0800 GMT after the group said the 2.97 billion new shares would be at a subscription price of 0.92 euros, a 36% discount to the theoretical ex-rights price based on the closing price on Wednesday."
https://www.reuters.com/article/iag-shareissue-idUSKBN26117I
Alexios,
Perhaps if you bother to read the RNS issued by the company on September 10th you would note that they stated a 35% discount compared to September 9th. You have also changed your close price from 220 to 200p which is strange. According to trading view the close was 140p which would make sense. Maybe I am wrong at the end of the day I am not invested in IAG so I don't fully know or care I'm just going off the facts I see but I also don't know why IAG would lie about its discount through an RNS maybe you can explain it to me?
Shamrock,
Well if you pull the calculator and check what was the sp on 9Sep(200.9p close) then you will get the calcs bellow
35% disc from 200p is at 130p. It is where TERP(Theoretical ex rights price) is...
Rights issue price is €0.92/84p but brokers converted at 88p so discount was 56% or real discount was 58% at €0.92/84p
You are welcome
For IAG the subscription price was 0.92 euros, which was a 36% discount to the theoretical ex-rights price based on the day's closing price
if the SP hits 60 I’m going all in
Share price was 205 and rights were offered at 84 in english money so represented more than 50% discoujt.
Yes if you read the IAG RNS properly you will see that they offered a 35% discount not 60%.
Look at IAG
They managed to raise at €0.92 when sp was 220p
And sp dropped under 90p already today without RI's even finished...
Similar cash raised
Reality for RR is RI's will happen at 60% discount or more
150p - 60% = 60p
Shares will trade at 60p
Needs to drop by 50 percent casa
" So how much will this rights issue and or sovereign fund buy in of the shares in your opinion dilute the price "
well when you think the share price has dropped 80% this year and 40% in a month, based on "fear" and "speculation", then personally I dont see that much .....not a chance at 60p in my opinion
WILL THIS EVER GET BACK TO £3??
So how much will this rights issue and or sovereign fund buy in of the shares in your opinion dilute the price
My guess is around 100 level plus or minus 10%.But it has to be at discount to corrent share price otherwise nobody would want to buy these rights.But lets see!
Casa yes 80p when sp was 250p not 150p like today
64p 12Mar 2003
72p was the lowest shes been if I remember correctly, so if its heavily discounted I would expect it around there
not far off their plan with jpm of 80p- all starting to make sense now
£2.5Bn rights issue when the company Mcap is ~£3.1Bn
150p lols
Divide it by 2 and take another 20% of and you will be closer to reality
60p is my call
You must be kidding,talk to me after 1st October once we have found out about rights issue price.Who would want to take up rights issue at 150 when price is around this level.It has to be at some discount to encourage maximum take up.
Shorters instantly murdered this back down, didnt take em long
" The scale of the share price slump at Rolls-Royce - its valuation has fallen by more than 80% in the last year - means that a £2.5bn cash call would involve the company raising almost its entire market capitalisation by issuing new equity. "
suggests that the sell off has been a touch over done.....RI could even be 150p..
You either opt for a lower price and more shares...or a higher price and fewer shares...
An ally like Kuwait or Singapore would be more supportive of the latter....unlike to vultures at JPM or Goldman Sachs