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Well spotted. I didn't realize that either. I wonder if they managed to exit IRON before the SP collapsed.
Just read through and noticed this:
" We have exited all of Arix’s public positions and invested the proceeds and acquired cash into our own positions."
I'm not saying it was the wrong thing to do, just didn't realise that was the plan. Was anyone here expecting this?
Https://www.rtwfunds.com/media/uirpirpr/rtw-biotech-opportunities-march-2024-factsheet-q1-letter.pdf
Unless I've misunderstood, the mcap shown here and elsewhere (even their own Factsheet) doesn't take into account the 48.3m shares due to be cancelled at the next AGM. These arose from the conversion of RTW's holding in Arix that they'd aquired from Acacia prior to the merger - see 13 Feb RNS. If that's right then the "true" mcap is approximately (386.7m - 48.3m) x $1.32 = $447m = £354m.
On the other hand I think the SP is still due to recover around 10% in the short/medium term as the ex-Arix-holder sell-off peters out, which would bring it back to $500m/£400m. As well as FTSE tracker buying, those figures might well be self-imposed minimum mcap limits for some institutional investors.
That could be significant as the trackers will have to consider buying it. The current market cap is approx 400m GBP and there are 3 companies with a smaller Mcap in the FTSE 250.
On a first quick glance through, this jumped out for me:
"RTW Bio may also in the future qualify for inclusion in the FTSE 250, which could further improve the secondary market liquidity of its shares."
Most of that was the 3 clearly related sells at ~16:13. That's getting on for 3%, so there must be a good chance of a Holdings RNS.
11m shares traded yesterday, well above the average. Any ideas? News coming?
Hi myepic, many thanks for that update. I put in a formal complaint to Fidelity a couple of weeks ago, which they say they're investigating. If they don't play ball then you've now given me great ammo to fight back with :-)
So anyone else that's been given RTWG, probably best to hold off selling until this is resolved!
An Update on this one - after an initial ,"no RTWG is correct" from my broker - I contacted RTW - they were quick to respond and confirmed it should have been RTW (USD) not RTWG (GBP) - my broker then moved my holding to USD without charge or resistance - RTW also followed up to make sure it had happened.
On the face of it the deal was sort of ok -- except we got shafted and given RTWG instead of RTW - RTWG is some weird GBP version that has very little liquidity and an appalling spread
Yes shafted by Swissquote in the same way - rtwg - a piece of dog poop that just sits there when RTW goes up and has a spread that make it virtually untradeable
HL already supported RTW, and that's what they've converted my Arix to, which is fine.
Fidelity didn't support either, and has converted to RTWG, which is not fine. Why? Because RTWG is thinly traded, and has a spread to match. Today I can sell 10,000 RTW with HL for 104.39p, but for Fidelity/RTWG I'm only offered 102p.
Perhaps Fidelity thought they were doing us a favour by choosing the £-denominated version, but it certainly isn't working out that way, for now at least.
RTW
What is GPD?
Out of interest did you receive RTW or RTWG ?
Estimated NAV/share is $1.88, so the current SP is at about 31% discount.
According to HL the 12 month average discount to NAV is about 25% which would put the SP at $1.41, so we might reasonably expect a drift up towards this as the sell-off abates.
I am now an RTW holder. Looks like i bet the right way by buying ARIX a few weeks ago. Makes a nice change tbh - I'm always nervous about acquisition arbitrage opportunities, far too many don't happen!
Anyway - i'm in, now just have to get my head around RTW.
So I’m not much of a poster (understatement) but assume I’m not alone in thinking this currently ain’t a great deal for Arix holders…..?
Interesting that HL displays the $ price for RTW but when you place a deal the price is given in GPD.
I can't stand having non-rounded shareholdings so felt obliged to have a small top-up...
All the very best to new and existing LTHs.
Chard_Nick
HL done and looks OK.
...and still waiting.
Pleased to see this in today's valuation RNS:
"The Company intends to publish, at the soonest opportunity, an indicative and estimated pro forma NAV and NAV per share as at the closing date of the Transaction, reflecting the completion of the Transaction and new share issuance."
Also pleased to see they've ramped up the buy-back to take advantage of the ex-Arix sell-off. That's been more severe than I was expecting, given that many people won't even have the new shares yet. (But it doesn't alter the thesis that RTW holders should have taken the opportunity to sell and buy Arix shares instead!)
Thanks, I'm still waiting for HL & Fidelity.
My RTW shares have just appeared in my ii account - all looks to be correctly converted.
Thanks