The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
@fordm, thanks...
email, simple answer is no. but you do have to be a UK resident with a UK address
My broker-form in Italy requires any buyer of right/shares be a qualified professional investor. Is that true for British account holders?
£1.81.4 at the moment, ex rate 1.185 .
All, thanks for your comments. Barc have said they added 5% to the price to ensure any FX changes would be tolerated and once the purchase takes place the actual fx rate will be fixed and they will only take what is due at the 2.15 euro price, so it will be alright on the night. I have elected to take up my full rights and sold some ezj to fund it, thinking that the TUI price is artificially suppressed at current time because of the RI churn.
Yep. Totally agree with 3 previous posts.
Taverham, as they say... It'll be alright on the night.
Yes, brokers do have a slightly differing way of dealing with this since it involves a currency conversion.
that precise conversion rate, is unknown until the due date.
It will approximate E1.185 : £1.
So, as has been said each right you wish to fully purchase will cost you approximately £1.83.
If you leave (say) £1.90 for each share in your broker account, you will be more than fine.
There are no charges at all, not even exchange conversion.
Your broker will deal with it all in £ sterling.
The added minor issue here, is that the RI is being undertaken in a foreign currency.
Nothing you need to do, other than instruct your broker with the option you wish to pursue, and have sufficient cash in your account with your broker.
Halifax have just quoted a figure in £ worked out at £1.82 ish . Doing something right for a change.
Rodney - that’s definitely how it’s working with my broker. They’ve set aside 192p but said explicitly they will return to my account anything they don’t need when they actually buy.
I believe the exchange rate will be fixed at the date of purchase (probably by TUI broker handling the RI). This would be similar to when dividends are quoted in € or $. I think the variety of £ being quoted is just shareholder's brokers making sure you have sufficient to cover e.g. my broker wrote this in their email -
"We don’t know the exact sterling cost yet. We’re asking you to make 190p available for each share you wish to buy."
Maybe those who partook in the previous RI can confirm. I find it hard to believe everyone could be charged differently.
IMHO
Amazed by different brokers treatment of this, Barc want £1.92 for each rights, which means they are effectively making a profit of 13 cents per share for each rights taken up. ii want 2.15 euros for each rights taken up BUT the cash in my account has to be in euros on the day in question. Think I will contact Barc and ask why but , at that price I would be better off selling those rights and buying the shares in the market ! My advice to all is to double check the price and currency for settlement!
Hi Duka
Rights Issue shares are being offered at EUR 2.15 (not £2.15).
@Duka - The cost of each new share is 2.15 euros (not GBP) and this price is fixed and works out as about 183p.
The other numbers you are referring to relate to different things.
The ‘value of the rights’ is what you would get if you sold them. This should currently be around 79p so if instead of buying new shares at 183p each you can sell the rights for 79p each. This amount varies with the share price (sp) as it is the sp - 183p.
The sp is also what’s known as the ‘ex-rights’ price as it is the price of the shares without any rights as someone buying ordinary shares on the market now is no longer entitled to them.
The different numbers you have seen have been different peoples’ views on what this price should be based on what the (higher) price was before the rights issue (when the shares were entitled to rights).
In my view this is 280p as this is the ex-rights price equivalent to the sp when the RI was announced (326.8p). So at the moment TUI is trading below this, which means the price has fallen since the RI was announced by more than expected from just the impact of offering new discounted shares.
All these terms can be confusing but if you’re still not sure what they mean there’s lots of good info available online.
Hi, I have seen a lot of prices for the rights mentioned, however just received my updste from HSBC who I have my invest direct account with, they have advised the cost of each share will be £2.15, does this seem right please