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I’ve had an email from Trading212 to say there has been a delay issuing the shares, and it may take up to the 19th to complete:
Thank you for reaching out.
The expected date for distributing shares for the rights issue for HYVE has been changed to 19th of June due to a delay from the company distributing the shares. We expect to receive them sooner.
You may rest assured that as soon as we receive them you will be credited the shares that you are owed.
Guys, I am with Trading212, I have subscribed to RI shares in Full. Not received into my account yet... have anyone received today?
I can't recall if you mentioned which investment platform you are using, but any technical issues should be ironed out by today or monday at the latest. The bigger question is whether you should sell or hang on. Again, only you can decide that partly based on the reasons you invested in the first place. Why were your reasons for investing and your approximate entry price, post consolidation?
Hi again and thanks for previous help on this Hyve share rights issue. Just (hopefully) two more questions if you don’t mind. My lines of stock today show 13031 new shares allocated, but with no price? The total stock value shown does not reflect the actual market price £1.1815 per share, why is this please, and is it just the way it is but it feels like a rights issue is beyond confusing for the novice investor. I have £19k invested in this stock and wondered if it’s right to hang on or get out now and reinvest elsewhere. Thanks in advance
Thanks so much for your advice ??
What is novices are just after assessing is what is the most likely effect on the sharePrice when this takes place on the 12th?
Hi, I am very new to the share trading and possibly I entered at the peak (bad luck) @169. I don't have rights of course with this transaction. I think when rights come online there will be selling and possibly the shares will get depressed further. Should I sell or there are chances of upward movement. I am sorry but new to this game so just trying to be cautious. Are there chances of the share moving up. Thanks a ton.
I use HL as well. You should have received a message or letter saying the below.
Hyve Group plc Rights Issue - Important information about your shares
Dear xxx
Hyve Group plc wants to raise approximately £126.6 million (before expenses) to support the company in light of the COVID-19 pandemic. To do this, they are giving existing shareholders the chance to buy an extra 9 Hyve Group plc shares for every 40 shares held at close of business on 27 May 2020.
Before opening the Rights Issue, the company implemented a consolidation where shareholders at close of business on 27 May 2020 received 1 new share in place of every 10 previously held.
As you held xxx Hyve Group plc shares (before the 1 for 10 consolidation) in your HL Stocks & Shares ISA, you’ve been credited with xxx Rights. You can choose now if you’d like to take up your Rights and purchase extra shares. The easiest way to do this is online and the deadline to give an instruction is noon Tuesday 9 June 2020.
You have three options
Do nothing
You don’t have to take up your Rights. If you don’t, your Rights will be removed from your account. If the share price is above 69p when the offer closes, we’ll pay the difference to you, minus any expenses.
Take up your Rights
You can choose to buy up to xxx shares at 69p each, totalling £xxx.
You can buy one extra share for each Right held. You cannot buy any additional shares on top of this.
As your Rights are in an ISA, you can buy the new shares in your ISA or in a HL Fund & Share Account.
Your new shares will be bought at 69p, regardless of the price of Hyve Group plc This means you could end up paying more or less than the market price of Hyve Group plc shares. So it’s a good idea to check the current Hyve Group plc share price before making your decision.
How to take up your Rights
Make sure the cash you need to buy shares is in your capital (not income) account by Tuesday 9 June 2020 and remains there until we debit the cash, expected Wednesday 10 June 2020. If there’s not enough cash we’ll only apply for as many shares as your capital balance allows. Cash from top ups and sales can be used to buy new shares.
Choose the Corporate Actions icon on your Hyve Group plc Rights and follow the steps. Please state clearly in the further details box if you wish to take up your Rights outside of your ISA.
Alternatively you can call us on 0117 900 9000 or send the enclosed form to Freepost Hargreaves Lansdown.
Your new shares are expected on, or around 12 June 2020, and we’ll add them to your existing holding.
Sell your Rights
If the share price is above 69p your Rights are expected to have a value of their own. Instead of taking up your Rights you can sell them online or over the phone at our normal dealing rates.
If you’d like to sell some of your Rights and use the proceeds to take up the rest, call us on 011
Thanks for the reply. I use HL and spoke to a guy twice and he couldn’t answer my question so escalated it to another desk so waiting for a call.
The 13031 is the RI shares you are eligible to buy at 69p (£8990). You will then have 18700 shares approx costing approx £19000.
Giving you an average of just over £1/share. You average price without taking up your rights is Approx £1.72.
The previous high of 80p equates to £3.55 after dilution. So £1.33 presently seems fair value for Covid 19 period, but they also have a cash pile.
BB
1. The rights should have already been allocated to you. The rights will convert to shares and be allocated to you on 12th June. They should automatically take the money from the cash in your trading account. But u need to confirm with them as we use different brokers. They should have sent you an email detailing this. Mine did.
2. Yes
Hi WG213,
Thank you for your post(s). Rather useful.
Quick couple of questions:
My broker is IG - they’ve confirmed their RI deadline is 8 June.
I have expressed interest to take up my rights, which they have acknowledged.
1. When will they allocate these rights to me and will they simply deduct my payment from cash I have on my account?
2. Am I correct in understanding if you have say 1,000 new shares through your rights, that will cost £690?
Thanks.
Hi Dprogerson, I am surprised your broker doesnt know what is happening. Who do you use?
As a summary, due to the dilution of the rights issue, yours and everyone else's shares dropped overnight on 27th May. You dont actually lose money since you were credited with nil paid shares. The number 13031 given is correct by the way.
If you have £8991 you can register your interest to buy the rights issue before midday 9th June depending on your broker. If you have money, best to register interest immediately.
If you dont have £8991 you can sell your nil paid rights with your broker and they will give you cash roughly equivalent to the recalculated loss incurred overnight on May 27th. Or you can sell part of the nil paid rights for some cash to use to to buy the remaining nil paid rights.
Your broker should not have told you not to worry about nil paid rights but should have explained something similar to what I said.
Some helpful links are
https://www.sharesmagazine.co.uk/article/how-rights-issues-work-and-the-decisions-investors-need-to-make
https://www.investorschronicle.co.uk/comment/2019/12/18/how-to-understand-a-rights-issue/#:~:text=A%20rights%20issue%20gives%20existing,each%20existing%20share%20you%20own.
Hi. I’m fairly new to trading shares so some of this is fairly new to me so please bear with me. On 20th April I purchased 15551 shares at 25.7218 pence per share totalling just over £4000. The shares subsequently dropped where I thought it was value to buy some more, so on 19th may I purchased 42368 shares at 14.1616 pence per share totalling just over £6000. So a overall £10,000 investment.
The share consolidation happened overnight and I had no awareness of this. My initial investment was showing its value at around £9000 in total from memory at close of business the day before the consolidation, however my share account shows the correct number of shares, but the value when it was recalculated is lower by almost £4000 that the value on the day before,why would this be is my question. I have spoke to my broker and they can’t answer me but are looking into it.
I have also had a line of nil paid rights added to my account of 13031 nil paid rights that show a significant value,but my broker told me not to worry about them?
I would really love some advice on this to fully understand my position if someone can please help in layman’s terms.
Anyway, thanks in advance.