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How do you know it doesn't relate to the 'old' shares? Do you have the actual volumes? There are no new SYNT shares in circulation until tomorrow.

I mean, isn't the 8.5% in terms of the current 23.4m SYNT shares in issue? It doesn't include the nil paid rights, does it?

From tomorrow they'll be 163.6m shares in issue, as the SYNN become fully paid SYNT.

Check their charges. Believe it or not, some brokers charge for accepting your instructions on corporate actions.

I doubt there are significant short positions in SYNN therefore a 8.5% short in SYNT will fall to about 1.2% tomorrow. i.e. not that much, such is the dilution.

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.

Some traders will probably shorting SYNT, just for the SYNN arbitrage.

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).

Wadz, you're overlooking the value of the 600 SYNN nil paid rights shares you now have.

When SYNT went ex-rights on Thursday last week, the majority of the value got transferred to the SYNN shares. (With SYNT about 270p and SYNN about 70p, 6*SYNN were worth 420p).

Mr-O, taking up the rights or not taking up the rights makes no difference as to whether or not you lose a substantial amount on your original investment.

If you want to maintain your original level of investment, but not increase it, you could always sell your SYNT and/or some of your SYNN rights shares to fund taking up the remaining rights (sell SYNT if it trades at more than SYNN+197). The fact that you hold a reduced percentage stake in the company is unlikely to bother you.

It's possibly easier if you separate out your original investment decision from the rights investment. I think the idea of combining and averaging down is a way of people kidding themselves things aren't so bad really!

Until now I've not looked at T212. However, I spent a few mins and it appears to me:-

They provide ISA for stocks and shares. These are real shares, held in a nominee account

CFDs. These are contracts with them and don't confer ownership of physical shares. However, in the T&Cs they say,

16.4. If a company splits or reverse splits its Stock or issues rights or is subject to any other

Corporate Action, you shall be informed and agree that the quantity and price of the CFDs in

your position may be increased or reduced.

Mr-O, is spite of how they're dressed up, rights issues aren't really a discounted price. The value of the "discount" you get is offset by the fall in value of your original shares, when they go ex-rights. You don't actually get any benefit over anyone else buying in the market.

The total value of SYNT + 6*SYNN has now fallen almost 50% from the pre-rights value of SYNT. Horrendous.

Al4x, was based on your SYNT holding at close on Wednesday (27th). Ideally SYNN should have been in your account, ready the sell, before open on Thursday. Clearly some people were able to sell them.

I didn't hold but if I had done I'd have expected IG to have had them setup in time.

Surely depends if you trade CFDs with them or stocks & shares (e.g. via ISA).

Even if you trade CFDs T&Cs normally state something along the lines of with corporate actions replicating the economic impact of holding the actual shares.

Al4x, that's disgracefully poor of t212. I think you'd have grounds for complaint. They appear to have deprived you the opportunity of selling SYNN on Thursday at 75p. Now you can only sell at 22p. That's significant, given you have 6 SYNN per original SYNT.

If you let SYNN lapse you should receive lapsed rights proceeds (your share of the rump placing on 13th).

M1600, if people are prepared to pay 220p for SYNT today, do you not think people will be prepared to pay more than 197p for them in 10 days time, when the rump gets placed?