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i can't see this being a 1 for 1 offering but it all depends on the discount they want to give!
this will be announced with the price. As examples BTs offered 3 shares for every 10 held; Whitbread's was 1 for every 2
& for those who think an RI is dire news spare a thought for all the investors in other companies who have had share holdings diluted with no opportunity to invest(e.g. Ted Baker). A RI is at least a fair system whether people agree with it or not. The business can only be stronger with extra cash injection. I'm sure the market will realise this in time!
Whitbread's RI price £15, price on Friday £22. Don't know why everyone getting het up for. This is an opportunity for existing shareholders without as much uncertainty!
If you have the funds in place the RI is a no brainer really as you can buy the discount shares & sell them on first trading day at profit!
this share is definitely best bargain on ftse, potential upside wise at the moment
i agree especially if positive COVID news in next 3-4 weeks. if all doom & gloom MMs wil short sell, hoover up the panic sellers shares & get loads more on the cheap too. could go either way based on sentiment!
In my opinion sp will rise until gym as people will want the cheap rights and not miss out. Ri can be a good thing if people believe in the company and what they need the money for. If the company needs it as going bust then not the best as people will not take up the rights. IAG are not going bust, want money to sure up in case Covid worsens, want to be in a sting position to jump on those that fold so see 100% uptake and sp in a very good place in the next to years with IAG having a larger % of the market IMO
If somebody wants to buy, he/she would for rights issue.Right now there is limited upside , post rights issue it would be a company with a strong balance sheet and in much better position.
Great time to buy shares in these companies, long term will do OK!!
The main problem is having the funds to buy the rights or you either have to sell before, sell your nil paid rights or sell some nil paid to buy some rights etc also if shares in isa it is harder as I think(not 100% sure) but the cash to buy rights needs to come from with in isa which causes issues if you can not put in more cash as at your limit.
IF you google rights issue example there are plenty. There are certain dates/days that you need to hold your shares sell rights and live new price day etc. As for visibility they appear in your trading account as rights when ex rights day has past gla
yes, always discounted, sometimes deeply discounted. In the BT one SP was £5.62 & rights were 3 for 10 at £3
Yes, hard to predict a bottom, it can go down to 110 or rise upto 210, who knows.
Where would these choices be visible to us on a investment account with Lloyds/halifax/barclays etc ?
For clarity I mean
Option 1 buy discounted shares
Option 2 sell your nil rights
be surprised if SP stays at this level for long but who knows!
Any Rights issue would have to be at discount at previous price as for arguments sake lets say share price is 170 and they carry out rights issue at 135 for 1:1 basis representing 20% discount.In almost all of these cases there has to be a discount as why would somebody take up rights when it is cheaper to buy shares in open market.
as we all know, a lot can change in a month here!
We might see a few 5 or 10% rise or fall here and there but no major moment until September and we will go from there.A few airlines carried out Rights issue when market was recovering and are in better position now .May be IAG left it until it was too late and it has lost 50% since june and we have a rights issue looming over us .Too be honest I thought if they did announce RI in this update it would be at 160 level.
thank you CAW, & at that point a market opens where existing shareholders can sell nil paid rights!
They can not give price as it is related to the closing price of the previous day once RI is notified officially. Ie 30% discount of previous days close at 4:1 as an example. The Bod will want sp to be as high as possible prior so hopefully an up trend until notification.
agreed, this has been very poorly handled & the one thing this market hates is uncertainty. i don't expect much movement on SP unless short sellers come in!
Arguing over share price when we dont even know conditions attached with RI is pointless, I only blame bod as they should have specified a price to put a floor under share price.Right now we are getting all sorts of predictions.Just a week ago they announced that no decsion has been made and a week later they annouce that they are trying to raise 2.5 billions via RI exact figure given by various media sources.BOD was trying to mislead us as these talks were going on for months and media sources were predicting a rights issue in June.
WW said he expects IAG to break even by Q4 so this RI must be for acquisitive purposes. i imagine some competitors will be struggling before too long!
i believe the EZJ RI shares were issued for 265p each. that looks like a pretty good deal today!