Sig Share Discussion Threads

[rik shaw] 20/6/2020 13:01

Dealing costs should be low as only apply to sale.

[puzzler2] 20/6/2020 12:26

Alternatively, in the above example you sell 12,500 shares at 35p and buy back under the OO at 30p - that's a profit of £625, which will likely be slightly more than the dealing costs, so probably not worth the effort. But if the share price rises in the next week or so, to say 45p, that profit becomes £1,875. So, I would keep an open mind during the next 10 days to the end of June and make a decision then before the closing date of the OO.

[rik shaw] 20/6/2020 11:56

No idea why anyone would suggest the share price might drop 20% as a result of this offer. The market knows all about the book building and open offer so the current share price should broadly reflect the markets current view of a fair price.

In terms of the maths for potentially selling some existing to fund your entitlement at 30p consider worked example below (which ignores dealing costs which would be applicable to sale).

Current holding value 50000 @ 0.35 £17500

Entitlement 12500 @ 0.30 £3750 25%

Sell to fund 10714 @ 0.35 £3750 21%

Final holding 51786 @ 0.35 £18125 104%

So you end up with 4% more shares at no extra cost. Is it worth the effort for an extra 4% of shares ? In the meantime there is no certainty where the market will move the share price.

[trinid2] 20/6/2020 10:25

can i get some thoughts on the following..

I bought all my shares @24 pence.... i have no more spare cash to prescribe to the 1-4 share deal offer, it makes no sense to sell £3.5k (thats what i would need to raise in order to but the 1-4 offer with the amount of shares i have) at say 35 pence to buy at 30 pence as i currently hold all my stock at 24 pence.............im not looking to top slice until about 44 pence...............someone over on LSE seems to think that if you do not prescribe to the deal your share will go down by 20% once the new share are admitted to the markets

i do hope the above makes sense...............

[useless23] 19/6/2020 19:41

Thar she blows

[neophytos] 19/6/2020 18:40

Great.. thanks again rik shaw.

Neo

[rik shaw] 19/6/2020 17:01

My understanding is that there was a bookbuilding part which was run and closed today. There is still a 1 for 4 open offer entitlement part which will run from now to 12 July to the timetable set out.

[neophytos] 19/6/2020 16:05

"Following this morning's announcement, the Company announces the successful completion of the bookbuilding process for the Firm Placing and conditional Placing of Open Offer Shares, which has now closed."

It's the "now closed" part that threw me. Can anyone explain what's meant here?

Many thanks
Neo

[neophytos] 19/6/2020 15:53

Guys, just spotted this:



What does that mean? offer no longer there?

Neo

[neophytos] 19/6/2020 15:51

rik shaw - spot on. II's phone lines were down earlier when i posted but managed to get through. Like you say, it will be posted on my account as a Corporate Action notice and i will need to specify on there how much of my entitlement i wish to purchase.. then they do the rest. Was reminded that Monday is ex date so to be eligible, need to be holding today. I was thinking of topping up but I wont as I have a sizable holding enough as it is... Plus im not cash rich so will need to sell something that's already profitable to take advantage of SHI 30p offer.

Good luck all!

Neo

[jock363636] 19/6/2020 15:00

Sick and tired of watching it go up then see it slowly go downWhy can nobody simply hold this bloody share for a period of time

[rumobejo] 19/6/2020 13:50

shame there is no excess facility, but taking all my 50000 shares in the open offer

bring it on £1

[rik shaw] 19/6/2020 13:40

If you use online dealers I would expect they will credit your accounts with your Open Offer Entitlement and give you a corporate action link to confirm if you want to take up your full entitlement, less or possibly more. You will need to ensure you have the cash in each account to cover the cost of the new shares, and your broker(s) will take your application for new shares forward. New shares in place of your entitlement should then appear in your account on or around 10 July in accordance with the timetable set out in the notice from SHI this morning.

[neophytos] 19/6/2020 13:34

Answering my own question, i'm thinking i'd have to go through by broker (II). I was thinking i could buy new shares online myself but now thinking this can only be done over a phone call with them... which would be annoying as they charge a lot more to trade via the phone..

Neo

[neophytos] 19/6/2020 13:05

Thanks for earlier reply Troutisout..

Question for all:
From what I understood, 240,000,000 new shares being released. First £60m worth of new shares are offered to CD&R at 25p per share. Exiting shareholders will be able to buy up to 1 for every 4 existing shares, for a offer price of 30p per share.

My current holding is circa 100,000 shares (split across ISA and trading accounts), so figure i could buy around 25,000 new shares at 30p for £7500?

Does anyone know how they would go about it, letting existing shareholdings have first dibs at 30p, 1 for every 4? Would I just buy SHI stock in the same way but my platform knows how much to charge and what my max amount would be? Never been involved in something like this so welcome any pointers please.

P.S. Are the new shares coming online this coming Monday?

Thanks, Neo.

[neg] 19/6/2020 12:33

10,000 at 30p. 25p is for the American VC.

[napoleon 14th] 19/6/2020 12:17

I take it that if I have 40,000 shares I can pick up 10,000 @ 25p, which I shall do.

Or is that 30p/new share?

Anyway, xr date is next Monday 22/06/20.

[1nf3rn0] 19/6/2020 11:07

No mention of the word "excess". Maybe CD&R or IKO will take any open offer entitlement shares not picked up by PI's.

[neilyb675] 19/6/2020 10:34

excess facility ?

yes or no

[yasyas1] 19/6/2020 10:08

38p big jump

[hamhamham1] 19/6/2020 09:39

Yep, some share prices are held down until their issues are tackled. If the business is good underneath the bonnet, the share price will then flourish after raising money. This is one such case IMO.

[neg] 19/6/2020 09:39

Can’t get the directors purchases to reconcile to their subscription of 2098095? It also appears that Steve Francis is being paid £375,000 to invest only £150,000! Anyone clarify?