IAG rights issue urgent help please

I hold shares in IAG, 90% on my isa and 10% on my invest account. I want to participate in the buying of the discounted shares. I realized that since I hold 17k worth of iag shares in my isa I’m not gonna be able to deposit any more money during this tax year. The problem is I need to deposit about 7k so I can buy new shares. I’ve been briefly told through email from someone from trading 212 that if I reached my deposit limit I cannot add more. Is it possible somehow to transfer my iag shares to my invest account or at least the rights? If I’m not gonna be able to buy new shares at a discount I’m gonna loose lots of money because of dilution thats gonna happen on Monday. Since I’m eligible to participate in the new share purchase I should be able to buy them therefore I would really appreciate if somebody from trading 212 contacts me because live chat does not work, nobody is responding to emails today

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@zdravkocempres
Your ISA shares can not be transfer to Invest account.
There is a away around it.
1st… You can not deposit more than 20K in a tax year, but in order to avoid huge dilution you sell some of your current holdings in ISA (IAG or any other holding) and free enough money to buy the discount.

2nd… Yes, there should be a way to transfer your right to your invest account, i read in FT that you can contact your broker and your right can be transferred to anyone, even if they are not share holder. So your case is similar.

However some one from Trading212 can guide better with this procedure… I’m not sure is T212 support this as yet but I really hope T212 can assist you with this.

Also, in the worse scenario will I at least be able to sell a portion of my rights to do this tail swallowing? Can somebody from trading 212 PLEASE clarify this

Thank you. I’ve spoken with someone from 212 through live chat and the guy was not very helpful, just saying they cannot transfer shares or increase my isa subscription. The email that I’ve sent this morning have still not been replied to and there is no phone contact to talk with anyone. Its very distressing since this is kind of a urgent matter, especially so because as well of a fact that if I end up being finally able to buy my full allocation of shares I need to know literally ASAP because I need to wire funds from my different sources and that’s gonna take a week and the rights issue procedure finishes in 10 days. Im aware of the isa limits but I’m pretty sure that if someone from trading 212 put their minds to it I would be able to exercise my rights in full. So far it’s been a very unpleast experience and if it doesn’t get resolved I’m gonna look to change brokers, spread a bad word about a platform and contact FCA.

I can understand your frustration, but you have to realise its weekend here. Any broker (abc) will respond back within same timly manner.

4hrs+ from your initial post does not define very unpleasant experiences unless there is more to it. If I was you I’ll concentrate on managing my different sources of funds and trying to speed them; so they are available where when needed not 1/3 of a month. Just do your homework make funds ready to deploy then blame T212 for not being approachable.

:cowboy_hat_face: I can use few unused right… if they are transferable… :wave::wave::wave:

By unpleasant experience I meant the live chat with someone from trading 212 that absolutely did not try much. Apologies to anyonr if my approach sounded a bit rough. Its just that I’m facing a financial loss that could become huge if I’m not even gonna be allowed to sell my rights so I’m very stressed out. Thank you for your help, hopefully trading 212 guys are gonna get in touch and we gonna find some solution

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No apology needed, I truly hope Trading 212 help you with the transfer of right to Invest account.

ATTN: @David @George @Team212

This will help alot of other members who wish to transfer their right to other.

If its good for one…

Thank you. Yes, I hope this will be resolved in an amicable manner, shouldn’t be complicated really, as you say, just a simple transfer of rights to the invest account, the shares can stay on isa of course.

I have a question: Would this be possible?

  • Sell your shares after the date but keep your rights and use that money to buy the shares from the issue?

It would mean keeping the same number of shares but having some spare cash (though it would also mean being diluted).

I don’t know, it’s just a question.

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Anyone not willing to exercising their IAG right.

Im willing to accept transfer of right, I would like to build a position withing this period.
I will try to contact T212 and see if they can allow this. Feel free to DM.

@EquityInvestor
This came to my mind too; but I’m not sure if this work like dividend or not. I’d love to know to.

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Let’s see what the 212 guys say.

Personally, I’m looking for one of the 2 options. Either:

  • transfer my rights from my isa to my invest account, I have 7034 iag shares in my isa, so that would mean I own 7034 rights there that can be sold or used to buy new shares,

  • sell all or a portion of my rights, so far they say the price per right should be around 46 pence, current share price is 195 pence and its gonna drop to around 130 probably tomorrow so that way we’re compensated for the dilution in case we don’t want to buy new shares (although 195-130=65) so you would actually get 20p per share less

@zdravkocempres
Just to clarify IAG right are 3 new shares for every 2 share owned.
So if you own 7034 share in ISA
Then 7034 / 2 = gives 3517 × 3 = 10,551
You have right of buying 10,551 new shares at Discounted price of €0.92 (around 82p or 84p)

If you wish to fully exercise your right you need approx

10,551 x 0.82 = £8651

After the Right issue Avg share price will be £1.31 based on this calculation.

If I’m wrong can someone pls correct me.

Yes Cai, your calculation is correct. And the difference between the estimated share price and the newly discounted share price will be the price of the right. Now, the questions remain:

  • can my rights be transferred from my isa to my invest account
  • can I elect (in case I can’t or I don’t want participate fully) to choose to buy only a certain amount of new shares (let’s say I can only buy a quarter of the total possible to buy)
  • in case I prefer to, will I be able to sell right or transfer them to someone else?
  • if I was didn’t use all or some of my rights, will the money that they are worth (seems like it’s around 50 pence each) be credited to my account?
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OK, Mr friend that holds iag in Hargreaves lansdown and has exactly the same issue as me has just spoken with them on the phone and they confirmed that there is absolutely no problem with transferring the rights from isa to invest. Can you confirm that it’s gonna be the same on trading 212?

Still no reply here or to any of my e-mails that I’ve sent. No phone number to call. Meanwhile I’ve spoken on the phone with people on Hargreaves lansdown even though I’m not a client. Come on guys!?

There another possible solution though:
If I sell all my iag shares on isa I will still be able to participate in the rights issue? I need 9500£ to participate, I have 7000 shares, if I sell them I’m gonna get about the same amount of money which I use to buy new shares and then I rebuy this 7000 shares using invest account. Can you confirm if this is possible and that if I do this I will DEFINITELY not loose my rights? Its stated that in order to exercise them I needed to hold iag shares on last Friday which I did

You don’t lose the value of the rights… if you do nothing you get the proceeds from the lapse of the rights… so it depends on what you actually/technically mean…You will get some money from your rights regardless … but not sure that’s an answer as not sure of the question

@zdravkocempres

I think the best way about is sending D.M to staff.
@David
@Martin
@PeterA

Peter responded me today with my query.

I hope they can advice you to.

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Finki, the question is whether I will loose the right to buy new shares if I sell my existing iag shares on my isa in order to clear funds so I can exercise the right to buy new shares. It says that I had to own this shares on Friday but now its Tuesday and the price of the shares has modified already, so, does that mean that if the only way to buy new shares is through this I will not get completely burn and in fact by selling shares automatically loose the rights I just got by owning them and then not only not be able to buy new shares but also loose the money I would get for the rights

I’ve sent a message to David and Martin, I’m gonna send one to Peter as well . Absolutely zero contact from anyone from trading212 so far, zero.