Kier Share Discussion Threads

[jubberjim] 14/5/2021 04:33

Very pleased with the way this has gone
Had these for sometime from around 115 and wasmfed up to the back teeth with their failure to launch
Hopefully the worst us behind us and it is onwards and upwards especially with the work coming in via HS2
I am starting to sleep a bit easier who said long shots never come in
Good luck everyone

[stdyeddy] 13/5/2021 23:14

Thanks for that video pric9. Nice to see Davies getting ahead of the news media to keep staff reassured. Excellent message. One crucial thing for us -- he mentions (at the 2min point in the vid) that the equity raise has been OVERSUBSCRIBED. An excellent result and a dramatic contrast to the 2018 rights issue (as he points out). I'll be very surprised if this opens ex-entitlement at 106p. If it does, I'll try to grab some.

Davies also looks tired! A tough few months by the look of things. He deserves a couple of weeks off.

The share price start line has been drawn; 102.5
Could be another action-packed day, upwards.

[pric9447] 13/5/2021 22:44

AD to staff

[petersw1] 13/5/2021 20:51

I'm also wondering about the 'excess entitlement'.
Seems worth applying, the more shares you can get at that price the better in my opinion.
I was slightly surprised they cap the excess you can apply for. Other open offers I have read the details on didn't do that. I suppose they either expect the demand to be high and are saving us from needlessly holding aside funds or the conditional placee wants a chance to have some.

Will also be happy if I don't get much as it implies strong demand and impeding rapid rerating.

[petersw1] 13/5/2021 20:31

Tnt99, I'm with HL. I went through an open offer with them on TRIG. They sent a secure message through the app / website with all the details. I was then able to apply online.

[stdyeddy] 13/5/2021 19:52

My guess is that the way this has been structured, the equity-raise will be fully subscribed without underwriters having to off-load shares which they've been compelled to buy. No 'frontrunning' by shorters hoping to drive the price down ahead of large sales -- this should be positive for the shareprice. Right now I'm wondering whether I'll be able to get anything via 'excess entitlement' -- if that's a common question, it'll also be positive for the share price

[tnt99] 13/5/2021 19:50

How do you apply I have them with Hargreaves Lansdown bought at 43p good day today who woo

[typo56] 13/5/2021 19:41

All holders at close today will be entitled to a minimum of 7 for every 8 existing shares.

Excess entitlements will depend upon how much entitlement hasn't be taken up by other holders.

The open offer shares are clawed back from the conditional placees. If the open offer isn't fully subscribed the remaining shares will stay with the placees.

[stdyeddy] 13/5/2021 19:35

This, btw, feels weird, having a normal advfn-type conversation without sicko and wally shrieking Armageddon at me.

[stdyeddy] 13/5/2021 19:32

Eight million shares bought today, so maybe there'll be room for them in the open-offer. It only needs 5% of current shares to not take up the offer.

[typo56] 13/5/2021 19:23

The confusion has been going on for years. Here's an RNS from Atlas Mara from 2017 over just this issue, presumably when they were pestered by PIs. Note how they also call the Record Date the "Mailing Date". It's really only of significance for certificated holders.

[stdyeddy] 13/5/2021 19:22

A lot of big buys went through post-close plus half a million on the uncrossing. A few sells too showing a big spread, so maybe dasty -- the sells seemed to range from 116p down to 104p. The market will digest the news and implications for Kier too, so I imagine initial ex-entitlement pricing and then the beginnings of a slow re-rate.

[typo56] 13/5/2021 19:17

I don't know why companies persist in using such archaic wording that clearly still misleads a lot PIs.

All that matters to us is the ex date. If they commence trading ex-entitlement tomorrow it follows that they've been trading cum-entitlement today. It's binary. There's no other state they can be traded

Being the recorded owner on the record date does not necessarily mean you are the person entitled to receive the open offer. Somewhere embedded in the open offer documentation you'll likely find something about if you've sold the shares prior to the ex date you should forward the allotment notice to the buyer. This really only applies if you're holding shares in certificated form.

According to the London Stock Exchange:-

Ex: When an issuer undertakes a corporate event, there needs to be certainty as to who holds the benefit of that event, where an execution takes place before it is completed. Unless the counterparties specifically agree otherwise the buyer assumes the benefit when trading ahead of the ex date and the selling party would need to pass the benefit on to buyer if the seller is still the recorded owner at Record Date. Likewise the seller retains the benefit if execution takes place on Ex date or later. If the buyer is already the registered owner at Record Date it would in turn would need to pass the benefit back to the seller.

[stdyeddy] 13/5/2021 19:08

Needs a clarification for buyers of the shares today. I'm sure there'll be an update tomorrow. Kier always loves talking to us. 😉

[dasty1] 13/5/2021 19:02

Thanks both. Bit complicated if you bought today! Main point: so this will open tomorrow ex-entitlement, so just over £1 I guess. At £1 a share, that could be a very attractive investment in a low debt, low PE share...

[pric9447] 13/5/2021 19:00

??? stdeddy, not exactly unambiguous is it.

[bathboy2] 13/5/2021 18:58

Pump and dump, share price rises after yesterday's cut off point, anyone bought in today will be disappointed

[stdyeddy] 13/5/2021 18:57

Thanks pric9 -- I was getting there. What does the 'may be eligible' part mean? Under what conditions? Are these POTENTIAL open-offer buyers if the shareholders at the 'record date' don't take up all of their entitlement?

[pric9447] 13/5/2021 18:55

Page 58 of the Prospectus Q & A's

7 If I buy Shares after the Record Date, will I be eligible to participate in the Open Offer?
If you bought Shares after the Record Date but prior to 8.00 a.m. on the Ex-Entitlement Date, you may be
eligible to participate in the Open Offer.
If you are in any doubt, please consult your stockbroker, bank or other appropriate financial adviser, or
whoever arranged your share purchase, to ensure you claim your entitlement.
If you buy Shares at or after 8.00 a.m. on 14 May 2021, you will not be eligible to participate in the Open
Offer in respect of those Shares.

[stdyeddy] 13/5/2021 18:52

From the Q&A on the Kier investor website:

If you held Shares at the Record Date or have a bona fide market claim, have not sold all of your Shares prior to the Ex-Entitlement Date and are not a Shareholder located in the United States or any Excluded Territory (for further information, see paragraph 8 of Part III of the Prospectus), you will be entitled to subscribe for Open Offer Shares under the Open Offer.

My reading of this is that to qualify for the open offer, you have to have held the shares at the close yesterday (12th May) and NOT sold them prior to 8am tomorrow (14th).

BUT....

7 If I buy Shares after the Record Date, will I be eligible to participate in the Open Offer?
If you bought Shares after the Record Date but prior to 8.00 a.m. on the Ex-Entitlement Date, you may be eligible to participate in the Open Offer.

[dasty1] 13/5/2021 18:40

Stdy - the pm rns says ex entitlement 8am 14th. So, tomorrow. I'm struggling with record date 12th, ex entitlement 14th! For dividends, it woukd be the other way around! Back to school for me. I just don't understand it!

[this_is_me] 13/5/2021 18:37

Wheeee! Up 20% today despite the placing/open offer being well flagged in advance.

[stdyeddy] 13/5/2021 18:35

And unless someone can tell me differently, buyers today are not 'Qualifying Shareholders'. The record date defines the qualifying shareholders, and the record date was close of business yesterday.

If this is correct and the market generally has understood this, the rise today is not about people trying to grab the open-offer shares. It's about the removal of uncertainty for Kier and the positive benefit of the recapitalised business.

My guess is that since the rights can't be traded, selling will be confined to shareholders who are reducing their holdings and taking short-term profit.

[stdyeddy] 13/5/2021 18:32

Something to bear in mind -- it's not a rights issue. The rights can't be traded, according to the prospectus:

Shareholders should be aware that the Open Offer is not a rights issue. As such, Qualifying Non-CREST Shareholders should note that their Application Forms are not negotiable documents and cannot be traded. Qualifying CREST Shareholders should note that, although the Open Offer Entitlements and Excess Open Offer Entitlements will be admitted to CREST, and be enabled for settlement, the Open Offer Entitlements and Excess Open Offer Entitlements will not be tradeable or listed and applications in respect of the Open Offer may only be made by the Qualifying Shareholder originally entitled or by a person entitled by virtue of a bona fide market claim by Euroclear UK's Claims Processing Unit. The Excess Open Offer Entitlements will not transfer with the Open Offer Entitlements claim, but will be transferred as a separate claim. Euroclear UK's Claims Processing Unit will not generate market claims for the Excess CREST Open Offer Entitlements. Qualifying CREST Shareholders claiming Excess CREST Open Offer Entitlements by virtue of a bona fide market claim are advised to contact the Receiving Agent to request a credit of the appropriate number of Excess CREST Open Offer Entitlements to their CREST account.

Open Offer Shares for which application has not been made under the Open Offer will not be sold in the market for the benefit of those who do not apply under the Open Offer and Qualifying Shareholders who do not apply to take up their entitlements will have no rights, and will not receive any benefit, under the Open Offer. Any Open Offer Shares which are not applied for under the Open Offer may be allocated to Conditional Placees, subject to the terms and conditions of the Underwriting Agreement, with the proceeds retained for the benefit of Kier.