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Hi everyone, I am new to trading and stumbled upon this which seems like a decent opportunity. However, I am not sure how delisting works. I understand that I will be kept in the dark after the delist, but I don't mind as long as my money is working for me. Especially that they great track record and promising growth forecast.
My only concern are:
1- Are they gonna keep giving dividends?
2- How save is money with them in terms of protecting my ownership of shares?
I hope someone could help and shed light on these questions. I would be very grateful.
Hi London123,
There is no guarantee that IBPO will continue to pay dividends and, even if it does, IBPO could, in theory, change the share structure after it de-lists so that, for example, Aggawal had "A" shares and everybody else had "B" shares. Not only could IBPO potentially change the rights to capital returns on sale but it could also re-direct any dividends to just, say, the "A" shareholders. Such changes would, in principle, require a GM to to be called but the changes would, at most, only need a 75% majority to be affected and Aggawal already controls >80%. I'm not saying that these changes are going to happen but they could happen and it would all be perfectly legal once IBPO de-lists because the minority shareholders would no longer have the normal protections affored by the listing rules and/or the Takeover Code (both of which IBPO has confirmed in the initial RNS would cease to apply).
That aside, if dividends were to continue to be paid to all the shareholders, the question then becomes of how that might be affected. Dividends are normally collected and applied to your account by your broker and today's RNS suggests that you will still be able manage buys and/or sells on the Matched Bargain Facility via your broker. So, presumably, your broker will still be able to process any sale proceeds to your account after IBPO de-lists by arrangement with the MBF provider, JP Jenkins, BUT today's RNS does not say whether, in the event that there are dividend payments, the JPJ will also manage those payments on behalf IBPO.
In managing the MBF, JPJ is only acting as a de-facto intermediary for the movement of funds between one shareholder and another, and today's RNS does not even mention whether JPJ will make any additional charge, over and above your normal broker's charges, for the provision of the MBF but that may have been covered off in a previous RNS (IBPO might be paying for the MBF).
Bottom line, I would ask your broker before IBPO de-lists what would happen in the event of a future dividend payment because if JPJ doesn't manage the payment on behalf of IBPO then the broker would need to be able to deal with both JPJ and IBPO directly (the former for settlement of any disposals and the latter for payment of any dividends).
Based on today's RNS it would be my understanding that any existing shares would continue to be held by your broker's nominee and, as such, as safe as they are currently are. I would assume that any new shares acuired after the de-listing would also be held by your broker's nominee but, again, I would confirm this with your broker before IBPO de-lists.
Just my thoughts, but hope that helps.
PS. Don't forget that if your existing shares are currently held in an ISA they cannot be held in an ISA once IBPO de-lists and will need to be transferred into a dealing account. Some brokers will facilitate such a transfer on request, others may not.
Hi TheTrotsky,
Thank you so much for your thorough response. I trade using 212 Trading, I am not sure they are a proper broker.
Kind regards
Mazen
I asked a few brokers that question today and given there is no change to business performance (I.e they are still growing fast) there is no reason to expect they won’t pay the dividend. JP Jenkins trades with a few other delisted companies with special facilities like announced today for IBPO and confirmed it is very easy to buy and sell and even get fills. Just set your limits for the day. They also give price updates as well(ie last trade prices)
So is everyone out that wants to be out or are you holding through the delisting ? I'm out currently but I must admit it's tempting to put my profit back in here for a free ride as I can't help thinking there may be long term value, really don't know
Thanks Stew for sharing that! It's great to hear that, it's my expectation for IBPO to grow and keep giving dividends. I bought the shares on Trading 212 app. What happens when dividend is due? Do I get it through JP Jenkins?
And in case I leave the dividend and didn't withdraw, will IBPO keep adding up for me and put it towards more shares in the business?
Sorry for asking lots of question. I am new to trading let alone delisting. Your answers are valuable and highly appreciated.
Now I'm out with a small but welcome profit I'd just like to ask London153 a question.
You've just seen the 82% majority shareholder destroy the investment of the other 18%. Once the company delists it will no longer be domiciled in the UK and enjoy whatever small protection that affords the investors. You will have shares in a company where the biggest holder, in total control, has already demonstrated contempt for his fellow investors.
Do you really expect to receive a dividend? Or even to see your money back?