Member Info for Spodulike

Read my last post.

Forward selling when placing shares usually happens during a share placing (a company issues new shares or large shareholders sell a block to investors through an investment bank). The key idea is that the market price reacts when the deal is known—not when the shares technically settle or get released to the market.

Let’s break it down.

1. What a share placing is

A placing is when a company or a major shareholder sells a large block of shares to institutions, typically at a discount to the current market price.

Example:

Market price: £10

Placing price: £9

Institutions buy millions of shares through the placing.

This process is usually handled by investment banks like Goldman Sachs, JPMorgan Chase, or Barclays acting as bookrunners.

2. What forward selling means

Forward selling refers to investors selling shares in the market before they actually receive the placed shares.

Typical sequence:

Investor is told they will get shares in the placing.

They know the price they’ll receive them at (e.g., £9).

The shares will settle in a few days (T+2 or T+3).

They short-sell or sell existing holdings now at around the current market price (e.g., £10).

When the new shares arrive, they deliver those shares to close the short or replace the ones they sold.

So they lock in the spread:

Sell today: £10

Receive placing shares: £9

Profit: £1 per share (before fees)

3. Why the “release date” doesn’t matter

The market impact happens when the placing is announced or leaked, not when the shares are technically issued.

Forward sold. Come on, learn the basics in regard to placings.

Nice to see we are nearly there. Have a great weekend all. :)

Churn nearly done.

Well undervalued. Bought more and holding for the inevitable rise. GLA

Fair enough Robbo.

Transhaven, pond life??? Not sure why you’ve named me in this. But very childish name calling.

Watch out for these monster delayed trades. :)

Thanks Blime.

Oldsharedog, i said volume would slow down. But very pleased to see nearly £450k buys more than sells. The churn completion is not that far away.

Can't wait to see the delayed trades printed later.

Anyone now what the buys v sells were yesterday please?

Hopefully not

If this volume and the ratio of buys v sells keeps going like this, forward flipping of shares will be done tomorrow.

Volume will slow down Oldsharedog unfortunately.

Current volume we are looking at 3-4 weeks.

Need at least 2 billion volume to clear this placing. We ain't moving anytime soon.

Oh yes sorry

Worth a punt at £160k mcap that’s for sure.