Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I’m trying to understand this return of capital to share holders better and here’s my calculation and understanding, please feel free to correct me.
Using Aviva’a share consolidation calculator 1000 shares are worth £4,233.00 after dividend adjustment based on the closing price on 4th April, £4.38 according to ii, a difference of 14.7p, the announced dividend amount. This makes sense because if I sell today I lose the dividend.
I then have 760 shares valued at £4.233 per share with a total of £3,216.10 plus £1,016.90 cash = £4,233.00, so no loss. The share consolidation happens reducing my quantity of shares to 760 x 0.76 = 577 shares (the 0.6 is aggregated and sold on the market then distributed). This implies a share price of about £3,216.10/577 = £5.57 if I am not to make a loss post consolidation. Given that the quoted dividend was 0.147/4.38x100 = 3.356% of the /4th April closing price the post consolidation dividend should be 0.147/4.38x5.57x100 = 18.7p.
The method of calculation will now stay the same, the difference will be the closing price the day before the issue of B shares (on or around Tuesday 17 May 2022).
Same revenue, same profits, less shares = higher EPS (and other indicators) = higher share price. I think the market cap remains the same.
The dividend tax rate for higher earners after the £2000 threshold is 32.5% whereas the equivalent capital gains tax is 20%. I believe this is might be one reason Aviva are going down this route rather than a special dividend. I assume that it is also more tax efficient for institutional investors too.
On page 131 of the prospectus there's a list of intermediatories, including: primarybid, interactive investor and AJ Bell so I'm guessing pi's can buy through them. No HL surprisingly.
My reading of the plan is that they are attempting to raise a total of £750m through the ordinary share issue, £75m, then the rest through C shares. The quoted dilution is about 16.5% for the ordinary shares which I understand. The quoted total dilution is 52% which I don't understand because the number of shares will be, if they succeed, increasing by 680m from 350m, I make it 66%. I think the C shares will only convert to ordinary shares when the capital had been fully deployed.
Very hard to defend the position in Tencent, I pay the management fee expecting the fund managers to be ahead of the game. It looks like in this case they haven't done their job. Other than that the fall in value is down to geopolitics and a move from growth to value. China is still a the world's manufacturing hub, still has a growing middle class so the nav and so should recover in time. This was always a risk, that's why we diversify. In my case HGT gain equals JCGI loss and Vinacapital is holding up well.
I've done a little bit of research and my understanding is that this means that GSF have access to an extra £40m to distribute to shareholders, which is a good thing. Would any of you more knowledgeable investors let me know if I'm on the right track?
Can't sell online with ii.
Sorry looks like IG.com offer a share dealing account too.
It's a bit like asking "does anybody have the recipe for turning lead into gold?". The shares are sort of worth 67.5 plus a few p for the ZNWD shares.
IG.com is a platform for contract for difference, it's my understanding that you don't own the shares you just have a bet on the share price. You can find out more here https://www.investopedia.com/articles/stocks/09/trade-a-cfd.asp.
I suspect this one will be a slow burner until the capital has been employed and next round of fundraising. Asia has to catch up with green energy solutions at some time in the near future. I'm looking forward to the 7% divi in a couple of years which after capital growth should be quite a bit more.
So the revenue for 2021 is likely to be £15m compared to £2m in 2020 which should lead to a big increase in the sp. So far today no trades according to lse, I'm guessing that the low volumes are due to the company being listed on the Aquis exchange which I didn't know existed until Sativa was de-listed from the FTSE. Maybe one day I'll get my small investment back.
"We are also optimistic about the outlook for Chinese equities. We forecast expected annualised returns over a five-year period, as we believe this figure provides a reliable indicator of potential market performance. Over the next five years, we expect annualised returns to approach 20%",