The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I can't see much interest in selling at the moment. If people were keen to sell they could have sold yesterday at up to 340p and still taken up their open offer entitlement.
Well done. You should qualify for the 267p open offer entitlement too, as they went ex from open today.
I take it holders will want to take up their open offer entitlement in full. I may have missed it but can't see the ratio in last night's RNS but it will be in the prospectus. From the number of shares quoted it looks like 2 new shares at 267p for every 5 existing shares held.
Hopan, the underwriters didn't buy the 10.3m shares, the rump got placed at 200p.
According to the underwriting agreement they got paid an underwriting fee of 2.65% of the gross proceeds of the Rights Issue in respect of the Non-KLK Rights Issue Shares (plus VAT, if applicable), plus costs. So perhaps around £6m?
"They" may not have closed their shorts at all. It's just what I said last week (and m1600 disagreed with) that the percentage short positions were declared in terms of the number of SYNT shares admitted at the time (i.e. excluded the rights). Now the fully paid rights shares have been included the percentage short positions have fallen below the 0.5% declarable limit. They may have been closed, they may not have been. We can't tell.
Jupiter have actually increased there holding. Look at the number of shares, not the percentage holding in the company which will obviously fall to 1/7th, with the new fully paid SYNT shares trading on Friday.
On 10th Oct Jupiter declared 5,427,474 shares (23.22% of about 23m shares in issue)
Yesterday they declared 12,787,976 shares (7.81% of about 164m shares in issue)
What site are you using to track shorts?
Trying checking fca.org.uk I think they should know their stuff. With the exception of the 0.51% with North Rock Capital Management, all shorts listed are in the SYNT shares.
Of course, I may well be wrong. We may find out soon.
It would obviously help if shorts were stated in number of shares, not just percentages.
Hi MikeS02,
Sorry to the others if this is going off topic, but the TUI rights issue was conducted under German law. That's why shareholders were not entitled to any proceeds from lapsed subscription rights as such payments are not permitted under German law.
(See page 48 of the prospectus)
As long as there's a market for SYNT above 197p any rights not taken up will be placed on Friday morning and an RNS issued stating the price. Any proceeds in excess of 197p, less minor costs, will go to the holders of the lapsed rights. The underwriters won't have to buy them.
The Bernenberg "upped their price target" is very misleading. I assume that's down to Alliance News reporting and Berenberg didn't claim that.
115p was from the note of 19/07/2023 and is obviously the target price of the shares, pre-consolidation.
It would have been better to state "reduced their price target, from 2,300p to 400p"?
As I recall, TUI and IAG were slightly different in that they were subscription rights (1 subscription right share per existing share) and conducted under German/Spanish law. I think this meant shareholders weren't entitled to any lapsed rights proceeds and it's possibly why the subscription rights tumbled in value towards the expiry date. This might mean the dynamics would be somewhat different than a normal UK rights issue.
Al4x, you don't have to buy the SYNN nil paid rights shares. You should already own them.
The question is, do you wish to pay 197p per SYNN share to "upgrade" them to fully paid SYNT shares. One way or another, from 13th October all SYNN shares will be fully paid SYNT shares. It's just a matter of who has paid the 197p on them.
If you don't wish to subscribe to the rights should be able to sell the SYNN shares before 13th. Or you could simply let them lapse and trust t212 to credit you with the appropriate lapsed rights proceeds!
I agree GMHK. Rights issues stink, especially for PIs and especially when they're on this scale, and highlight the inefficiencies and incompetence of brokers.
In this day and age it's a wonder they're permitted. How many PIs genuinely understand them? Surely could argue they're missold?
Wadz, SYNN are the tradeable rights shares. You should have received them, if you held SYNT at close last Wednesday.
Your broker should have advised you of your options on these rights. i.e. whether to exercise them at 197p per share, sell them (currently about 28.5p) or let them lapse (and hopefully receive lapsed rights proceeds amounting to almost the same as voluntarily selling them).