Direct Line Insurance Share Discussion Threads

[spob] 19/10/2012 12:07

any brokers allowing shorting for this ?

[gymfit] 19/10/2012 11:23

anyone got forecasts, is it 7% dividend yield

[jamielein] 18/10/2012 21:37

Thanks - that was really helpful.

Basically those shares were already admitted to trading, but the underwriters (who were short by that amount from the start) had the option to purchase them back at or below the offer price to support the price. They didn't need to purchase them back in this case so they exercise their option to buy those shares back from the company instead at the original offer price, which means that those shares are now permanently public.
Had the shares gone down instead, and they'd purchased them all back at or below the offer price, those shares would be cancelled (the buying back covers the short they had) and the extra shares would never have stayed in circulation as RBS wouldn't have had a chance to issue them.

Hope that makes sense!

[flyfisher] 18/10/2012 18:21

omicron , greenshoe (overallotment) explanation.

[0micron] 18/10/2012 09:42

The announcement states that the overallotment is at 175p



"Direct Line Insurance Group plc [...] confirms that [...] Goldman Sachs International, as stabilising manager, has exercised the over-allotment option [...] The Over-allotment Shares will be sold at the offer price of 175 pence per share."

However to me it is unclear whether the additional shares have already been sold or remain to be sold. They use future tense for the price and past tense for the event which confuses me.

Another example from the announcement:

"Including the exercise of the over-allotment option, the total size of the Offer was 517,500,000 ordinary shares"

[dr biotech] 18/10/2012 09:18

My interpretation was that they would release more shares into the open market at the market price. Those that got scaled back (Joe Public) won't get any more.

[spob] 17/10/2012 23:33

As I understand it

That is it now

No more additional shares

Please correct me if wrong

[0micron] 17/10/2012 17:58

Does the overallotment mean they will release more shares, i.e. whoever applied and got scaled down would receive extra shares?

[spob] 17/10/2012 17:01

Surprise surprise

Ig index shows this as unborrowable

[chinese investor] 17/10/2012 15:46

Go Horsey !

[aishah] 16/10/2012 09:51

Will enter FTSE 100 in due course. Will be paying a big chunk of profits in divs. Excellent hold IMO. dyor

[spob] 16/10/2012 09:30

interest

what's that ?

is that some kind of old fashioned investment terminology ?

[dr biotech] 16/10/2012 08:58

I think long term its a decent enough company. I always said I'd be comfortable holding them medium term if the stagging didn't work out. Only regret is that I scaled back my application due to the negative press.

Still made around 400 - not a huge amount but a years interest on £10k.

[zcaprd7] 16/10/2012 08:53

Looking ok so far - even pushed up the Admiral price yesterday...

[jamielein] 16/10/2012 08:33

I'm sticking around, hope I don't regret it!

[dr biotech] 16/10/2012 08:08

I am all out of this. GL to all holders.

[chinese investor] 15/10/2012 20:50

Looking Good for tomorrow morning !

[jonwig] 15/10/2012 13:37

Dr B ... TD Direct let me sell online straightaway, I did the lot on Thursday.

[dr biotech] 15/10/2012 12:37

Had an email on friday that said my allocation had been confirmed and that I could deal over the phone - becomes fully tradeable online tomorrow. Think I will probably sell up.

[cromwellian] 12/10/2012 09:19

Re HL dealing charges - if you normally deal on line they will do online dealing rates on the phone for conditional dealing

[bigman] 12/10/2012 07:48

a no brainer and a long term hold for income

[chinese investor] 12/10/2012 00:00

Easy Money.
Everybody I know bought some.

[dasv] 11/10/2012 20:55

FYI - conditional trading of direct line shares.

[cromwellian] 11/10/2012 20:45

HL phone dealing charges are 1%, £20 minimum, £50 maximum, may put some off perhaps.