RE: Pardon my Ignorance!4 Oct 2024 17:08
In the lowest, simplest terms I can think of....
The Block Listing in essence creates new shares, the Block Listing return allocates the shares.
A Block Listing is mainly used for Employee Share Schemes.
What would usually happen, and is happening with Carnival, IAG, RR etc. is that the Company basically creates x amount of shares, and just holds them in a treasury, so they exist, they are already in the total amount of shares in issue, they are just not "owned" by anyone.
Then the Block Listing Return in essence "gives" those shares to the employee scheme, whether director bonuses, maybe Employee purchase schemes etc.
BUT. As the Shares are already in issue anyway, they do not dilute the SP.
I hope that makes sense.