Member Info for Henrythecat

No 3 for 2
Divide 5000 by 2 then multiply by 3
That means you can buy an additional 7500 shares

I do not get this discounted benefit? It’s more of a compensation to equal the loss in value of your existing holdings. If the share price drops to around 135 you will have maintained the status quo. Lower then you would have been better selling and buying back - higher then you will benefit from the rights issue.
It depends on how you view the short term prospects of the company.

Yes - they will be shown ex rights and will be trading without them at around the Terp.

I sold out Friday.
It’s a big discount which can be looked at as a bargain or they are desperate to get it away.
With nearly 5 billion shares around after issue I can’t help thinking they will be trading at sub 130.
I will be tempted if they touch 180 tomorrow if not I’ll wait for the dust to settle.
There just seems to be too much bad news around at the moment to take a punt on a company whose profits have fallen of a cliff. Long term I think they are a great buy but 20 to 30p at the bottom end will not make much difference in 5 years time - unless you are swing trading of course.

Not very scientific but live in London favourite beers always popular thought oversold so got in at 490 the group holds lots of free holds so thinking long term.
Bought 8 other stocks for long term.
Although being having fun day trading IAG

MacRs.
Thanks - I see your explanation makes more sense

If you look at RNS Number : 5951Y they have designated close of business on the 9th Sept as the price for the Terp
Unless I’m reading it wrong . I know this is unusual and will lead to a volatile day tomorrow

Hi
The Terp is worked out by a formula where you input the price of the share at close of play on a specific day. (Normally the close of business the day before the announcement )
It has nothing to do with the price you paid for your shares. It is the same for everyone.

Normally (there is no legal time frame ) but shortly after the RI is voted through the company produces a detailed rights prospective- this should include discount , ratio of shares and a detailed account of what they plan to do with the cash.
Until this is produced it’s not possible to work out Terp or yield adjusted Terp.
But delay will cause volatility in the SP

I have not traded this share yet but it is on my list.
The thing that is holding me back is the link between creditors and the short position combined with the pending rights issue.
Even with the favourable refinancing rate they will be left with $13 debt repayment per $100 of revenue which is manageable but not if price and demand for oil stays low.
A real conundrum.
PI’s have little effect on the share price unfortunately imo

Within reason. They will be constrained by the low share price , hence market cap depressed. Raising £2.5 billion would have been easier if the share price was £3.50 and the company valued at nearly £7 billion.
What a company tends to do is tweak the discount to existing share holders to compensate them for the additional risk.
In an ideal world the share price after the rights issue should settle back down at a lower price commensurate to the discount and additional shares in circulation.
Remember it is possible to sell your rights issue as they have a value and are tradable- not all platforms are equipped for this so you may have to do it over the phone- but take advice on that one

When you do a new funding round, you don't transfer shares, you create new ones. If raising large amounts the share price would be far too high. To combat this they do a nominal split in this case it looks like 10:1. This nominal price has nothing to do with the share price in the actual funding round itself, it's just a number that is tied back to inputs made when the company was incorporated.

The price per share in the funding round is set by the company valuation, and is always much higher than the nominal value. It's worked out by taking the company valuation and dividing the current number of shares in issue or amount that needs to be raised.

The discount is weighed against how desperate they are to raise the cash and what risk they think their existing share holders are prepared to take. A failed Rights Issue is a disaster leaving disgruntled underwriters carrying the baby

It sometimes feels like an ATM - should read AGM

Some platforms are better at notifications than others. I think you will have to contact them via their secure message system and inform them of your intentions once the details are known.
Likewise with mine I have to contact them if I want , for example, to vote at an upcoming ATM. My platform state they would like as much notice as possible.
I assume you hold a nominee account.

A really bearish interview on Bloomberg recently from an analyst predicting big problems ahead for the premier carriers. He seemed to think that BA with its business orientated ( Billion dollar) transatlantic route will never get back to what it was and the longer this goes on the more people will be accustomed to digital meeting etc.

I think PMO is the 5th most shorted stock in the U.K. with 9% of shares contracted - is there any surprise that forces are at work to suppress the price.
When the creditor is also the hedge normal rules do not apply.