consolidation vals21 Feb 2021 16:45
Just trying to work out the vals
so 27th feb 2019 £955
12 feb 2020 £667.40
5th March 2020- 2nd April dropped from £588.20 to 5.50
The rights issue will see Rolls Royce allow existing investors to subscribe to 10 new shares in the business for every three shares they currently own. To provide an example, if you owned 1000 Rolls Royce shares at the time of the rights issue then you would be entitled to purchase 3333 new shares.
The new shares will be issued at a price of 32p, which is a 41.4% discount to the theoretical ex-rights price (TERP) per share of 54.6p on the day before the rights issue was announced.
The rights issue is significant for investors. Taking up your rights will allow you to retain your stake by buying more shares at a discounted rate. Those that don’t take up their rights will be heavily diluted.
The recapitalisation will result in 6.43 billion new shares being issued, assuming all rights are taken up, which would result in Rolls Royce’s share capital increasing 333% from 1.93 billion to 8.36 billion shares in issue. Any shareholder that doesn’t take up their rights will be diluted by almost 77%.