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Perplexing drop on no news, added a few as timing (especially mine lol) is never easy.

Surprised no comment on THG statement moving out of transition category, expecting similar from S4 this week.

Just watch the market change when people start showing an interest -

(Nedre Vats, August 23, 2024) AutoStore Holdings Ltd (AutoStore: OSE:AUTO) is pleased to invite institutional investors and analysts to AutoStore’s Capital Markets Day 2024 in Manchester, UK, on Wednesday, September 18, 2024.

The event will be hosted by AutoStore’s CEO, Mats Hovland Vikse and the executive management team. During the day, we will discuss AutoStore’s addressable market, its unique position in that market, its product strategy, growth agenda, and financial ambitions.

‍Participants attending in person will experience a tour of the largest, multi-tenant, high-throughput system which picks more than 65 million units per year. We will also demonstrate a full scale Pio P100 system, which targets the SMB market.

In addition, there will be an opportunity to hear from guest speakers John Gallemore, Chief Operating Officer at THG and Mark Irvin, Chief Supply Chain Officer at Best Buy who will share their perspectives on our solution and its importance to their respective businesses.

Autostore event tomorrow.

Softbank sent a team over not so long ago visiting THG Ingenuity (link in thread).

Softbank own 40% of Autostore

Ingenuity has already gained many Softbank customers

Lots of common ground and of course Softbank were part of the whole Ingenuity funding back in 2021.

SB, pondered this one too, my guess is there are two legs, importing goods which is costly and secondly repatriating cash into GBP.

Localised manufacturing lessens the first hurdle and a stronger Yen buys more GBP, that was my take but could be wrong.

- Just on your Yen point, I’m glad the analyst asked that question because it was on my mind. I didn’t really understand MM’s answer. I get that local manufacturing is a positive at any time, but it also figures that if you neutralise currency fluctuations in doing so, how does it become a tailwind for FY25? If anyone can explain that to me in simple language, it’d be appreciated.

Crazy numbers looking back, oversubscribed placing at 596p raising just over £1b, today entire market cap is c £770m

'Following strong demand in the bookbuild, the Placing has been upsized by approximately an additional 6.0 million ordinary Shares, increasing the gross proceeds from $270 million to approximately $320 million.

A total of 38,064,901 new Ordinary Shares will be issued pursuant to the Placing at the Placing Price to raise gross proceeds of approximately $320 million. In addition, 86,621,797 new Ordinary Shares will be issued pursuant to the Subscription also at the Placing Price raising gross proceeds of approximately $730 million, and together with the Placing, aggregate gross proceeds of approximately $1.05 billion.

The Placing Shares and the Subscription Shares together represent approximately 9.98% of THG's fully diluted voting share capital prior to the Placing and Subscription.

The Placing Price of 596 pence represents the last closing price of a THG Ordinary Share prior to the launch of the Placing.'

Good question SB, the thought did cross my mind especially when one of the analysts suggested local manufacturing maybe too late now Yen is appreciating.

The problem here is the market (and its demands) have moved on from high CAPEX businesses to cash generative short term tick all the boxes type investments, of course that's easier said than done once you have committed to this path.

My guess is the market will change again after spinning Ingenuity out even though that's what everyone (apparently) wants, rates are falling (big wk) and markets will once again look for growth companies ...

Valuation wise on Ingenuity, Sofina put cash in a while back, also have a seat on the board, reminder of their equity raise:

' SBM option and collaboration agreement for a $1.6bn investment in THG Ingenuity, implying an enterprise value of $6.3bn for a 19.9% equity interest. THG Ingenuity comprises the Ingenuity platform IP and the Ingenuity operating trade and assets, which will be separated into a THG owned and controlled subsidiary capable of receiving the investment

· Proposed c. $1bn capital raising consisting of a subscription of approximately $730m from SBM and a placing of up to $270m with long-standing, technology-focused shareholder Sofina expected to participate in the placing in an amount of up to $85 million, with gross proceeds to be deployed to execute an advanced pipeline of strategic M&A over the course of FY 2021'

The reply was a bit mumbled my end on the new listing Q, 50m sounds quite small but I guess is still a couple of weeks volume (actual).

Securing an equity partner along the lines of Softbank has always been my preferred option, look forward to updates on this as and when.

Good call, plenty on the Q & A from Citi, Lib and Peel.

It sounds as though Ingenuity is going to be separated out and either IPO'd or taken private, existing stake holders will be rolled in if they wish along with new investors.

The key thing here is it will give a much needed valuation to the new entity which THG will also have a stake in.

Basically, as alluded to on the call this is not the right environment for growth type companies so best hive it off privately until the market is more receptive.

Interesting comment regarding stakeholders being consulted throughout the year, would also explain why no buying from existing holders.

Solid set of results all things considered, I think markets will like the Ingenuity de-merger as this has always been a bone of contention, makes it easier to value too.

Note the extensive shareholder consultation on key points.

Moving out out of transition cat into main list, very welcome.

Traders disbelief watching THG turn blue ...

lol

https://www.cnbc.com/2024/09/15/stock-futures-are-little-changed-as-investors-await-major-fed-decision-live-updates.html

Piece on ONT in the Times with commentary on their move to FTSE250.

Https://www.thetimes.com/article/37dfefbf-9909-43b9-9cb0-6d6e1b7f44f2?shareToken=dba8ad3ccc59ebcbc4314fffbfcbcd69

I would be surprised if the boards of both THG and S4 are not aware of potential benefits also.

Bit of a build up to Autostore event ..

Good spot Yorek

Nice one Crafty, add to that list Yen/GBP tail wind should help too.

Also, if we get a similar update to ONT on moving to main list..

Today could have been an expiration date for these contracts, THG had an unexpected move up while S4 the opposite.

In answer to the last part of your question, it really boils down to liquidity or lack of it.

N/p, equity swaps are similar to options but instead of being fixed have two variables, or 'legs'

These 'legs' are agreed by the two counter parties in advance, typically one part would be interest and the second a price point based around a stock or equity.

Using S4 as an example; one party agrees to pay the other for each point S4 falls below 50p, in return for this their part of the contact (or leg) would receive a fixed interest payment.

In summary, one part of the contract now has a short position or hedge on S4 for any price falls below 50p with the counter party receiving interest, its another way to earn money if you have a long position but do not want to take the risk of loaning out stock.

These are likely scenarios based on what we know, where a stock closes (UT trade) can be hugely important on any given day.

These moves we see on S4 are most likely equity swaps being pushed in and out of price points, the overall return is higher than the cost of pushing the price in any one direction.

Thinly traded markets such as LSE are ideal.

This is the company backing Sodali

https://www.tpg.com/portfolio/

Well respected PR company on the books now, should help with counsel.

'Morrow Sodali is majority-owned by TPG Growth, the middle market and growth equity platform of TPG. It works with over 1,000 corporate clients in more than 80 markets worldwide on a range of critical issues including corporate governance and ESG advisory, IPO preparedness, shareholder activism, M&A services and proxy solicitation. '

https://sodali.com/news-events/articles/tpg-backed-morrow-sodali-acquires-powerscourt

Getting their ducks in a row for new listing rules?

Timing is about right, already had two declare ..

Still a while to go before official deadline.

'Deliveroo shares bounded to a two-year high on Wednesday after the food delivery company announced plans to switch the category of its stock listing, in a move that could attract a wave of new investors.

The company is proposing to move its shares from the Equity Shares (Transition) category to the Equity Shares (Commercial Companies) category on 10 October, 2024.

This change, which only requires approval from the Financial Conduct Authority (FCA), will place Deliveroo under stricter regulatory standards and could increase the stock’s visibility.

It also sets the company up for possible inclusion in the prestigious FTSE UK Index, which might drive investment from funds that track the FTSE benchmarks.'

https://www.cityam.com/deliveroo-shares-hop-to-two-year-high-as-it-aims-for-upmarket-move/