Member Info for Clank

Well I've just taken the plunge and bought my rights issued shares.
If the share price in the market next week drops below the subscription price in the rights issue then this will be a major bummer.
But after researching online in practice it seems to be very rare for this to happen, but if it does then Tui may decide to cancel the right issue process as other companies have in a similar situation, and maybe try again but with a different price structure.
I for one will try not to think about Tui for a while now!

Someone bought £2m worth of shares at 16.35 today for £6.17 a share so hopefully they know something we don't

Hi Hexam, thanks very much for clarifying

Looking at the latest trades made has made me decide to log off and pray to him upstairs lol
https://www.lse.co.uk/ShareTrades.asp?shareprice=TUI&share=TUI-AG

Yes I can wait until April 12th too, but if the share price goes below the rights price of £4.88 by that date then i think i'll simply buy new shares at the lower price instead

Tawes57 - this is copied from the TUI website
Investors holding depositary interests in the Company’s shares (“DIs”) on 29 March 2023 will be credited with pre-emptive subscription rights (“DI Pre-Emptive Rights) that will allow them to acquire additional DIs representing New Shares. Investors may exercise their DI Pre-Emptive Rights from and including 30 March 2023 (after being credited with them) up to 10:00 (BST) on 17 April 2023 (the “DI Subscription Period”).

Hi Hexam
My understanding was that the value of selling the rights is the difference between the TERP and the price of the rights
You dont simply sell at the £4.88 rights value because the rights are nil paid - ie you havent paid anything for them
So in Tui's case the value of 1 share sold during the rights issue is TERP (£7.80) minus Rights value (£4.88) which equals £2.92 per share
Happy to be corrected if i'm wrong

We are in a similar boat Jeffrey
For me personally i think that yes the share price will slide right down until the end of the rights issue, but i then have my fingers crossed that big institutional investors will pile back in and bring the share price back up to the quoted TERP of around £6.80
This will still leave myself and yourself out of pocket, but not by as much compared to if we sell our rights
You'll have an average price of £10.70 like you say and i'll have an average price of £9.80
Its then a case of hanging in for the long term and hope within a year or 2 the share price rises above our averages

Agreed Swingman

They plummeted because Tui are adding 328,910,448 new shares which means your existing shares are now a much smaller percentage of the much bigger pie

see should say sell there aplogies

It depends on your broker
I am with T212 and you cannot sell the rights with them until after the Rights issue finishes, which at that point could see the share price below £3.
However other brokers such as HL seem to allow you to see right away

The share price has already gone below £6.20 today - a drop of over 30p

By the time this rights issue nears its end the actual share price on the LSE looks like it will be way below the £4.88 discounted price currently being offered to us all :(

Hi Massimira
I am with T212 and have been quoted buying the RI at £4.88 a share

Juboy
Yes you are correct - your calculations are spot on in that your new average price will be £10.70
I am in the same boat as you in that T212 have said all they are offering us is to buy the right share now or sell at the end of the period.
My average was £18 before the rights share so like yourself either way i am going to be massively out of pocket

Hi Hexam and Forest
Yeah sorry the £18 was my average Tui share price the day before the rights issue started.
So for me personally my new average price if i buy the new shares will be £8.48

There seems to be a lot of confusion here.
If you take up your rights you dont suddenly have your existing and new shares valued at the current share price
If you owned 99 shares at £18 and now have exercised the rights issue and bought another 264 shares (99 divided by 3, multiplied by 8) at £4.88, your shares will be worth the 'average' of your 2 holdings
You now have 364 shares at an average cost to you of £8.48 each . You do not have the 364 shares at the current share
So at the close today of Tui at £6.50 you are £1.98 down for every share you own - ie £720.72 down

If your shares are with T212 they do not allow Tui shares to be sold by qualifying shareholders until the end of the rights issue period - 10th April
This unfortunately means that anyone wanting to sell their rights now are going to lose out because by the time that date comes around the share price is going to be much less probably than it is today

Oh no I wish I'd known that myself. I am a complete idiot for not investigating this more before buying A shares