That depends what your buy in price is.
Not sure why you are.all getting worked up over the GBP price set by IAG, this has nothing to do with 212. Their ISA rules and their all or nothing approach on the other hand are something to get worked up about.
And are they even crediting IAGN to accounts? I assume not. So weird how new brokers handle Rights Issues. You now own IAG and IAGN stock but IAGN isnāt reflected in your portfolio? So weird. Possibly āwrongā(ie illegal ) and certainly unfair to shareholders as you are therefore prohibited from trading the rights and/or (as suggested above) from taking up less than 100% of the rights or tail swallowing (stupid tech term, Google it)
If you decide to not participate, your rights will be sold on 21.09 at the market and the proceeds will be distributed shortly after to your account.
That is the statement I have got. What is the price of selling rights? Does that mean that in that case we will get 0.88GBx per share that we have right to buy?
IAG have set the price at 0.92 euros which at the current rate is equivalent to 0.85. Trading 212 are offering 0.88 which either seem like they are either using some form of spread or taking commission from the rights issue which is uncommon with rights issue, which when you are talking about owning shares in the thousands makes a massive difference. I will wait and see what other providers such as HL or AJbell are offering for the rights issue to confirm that this is the case.
If you read the IAG documents it is IAG who have set the 88p GBP price. Trading 212 are not at fault here it is nothing to do with commissions. or exchange rates.
They are at fault for not allowing people with ISAs that are fully funded to use their rights outside of the ISA. They are wrongly claiming this is the ISA rules where the ISA rules clearly state this can be done as long as the shares purchased with the rights are not held in the ISA account. They are forcing ISA holders with them to eat their tails.
Current IAGN (your Nil Paid Rights) share priceā¦ about 75p
Ah okay fair enough. Didnāt realise IAG had mentioned this in their documents.
Yeah agree on the ISA front. I donāt get that at all and the fact that they are forcing you to take 100% of the offering is also wrong for those who canāt afford to or just donāt want the exposure to that many shares!
Isnāt that just the price you pay (or dont)? Other brokers are more well established and have the money to dedicate to these processes. Iām glad 212 have got an option available, I honestly expected they may not have and theyād just sell them all.
Yes my friend has an ISA with H Landsdown and has non of these problems. They were happy to take the extra money and put the shares in an invest account as his ISA was full. The trading 212 support tried to say this sounds dodgyā¦they donāt even know the ISA managers rules which is worrying if they are managing an ISA. Trading 212 is really letting its customers down.
Please Help
I have all my savings in IAG and I do not have free funds to get my right shares from Ā£0.88, and I can not put extra money because of my yearly limit. So, in this case which way is better
- Sell my current ISA shares at the market price to buy shares from Ā£0.88
- Wait and do nothing
- Any other idea?
Thanks
I would put that question to a member of staff via a direct message rather than await a response on a forum.
I too have a few shares in my ISA account but can not afford any more money. I have a small holding of Tesla that has made good gains, should i sell the Tesla gains to maybe buy the new IAG shares? Any ideas?
Thanksā¦
We are currently unable to transfer the rights to an Invest account.
An option would be to transfer money to the Invest account, then sell the IAG shares in the ISA. You could then repurchase them in the Invest account. The rights would stay in the ISA, and you could use the money freed up by the sale of the shares to subscribe.
It is a personal desision. If you are short of cash you could just sit and wait for your rights to be sold and the cash to hit your account and then use it to buy more IAG if you feel they will increase invalue over time.
What is the Subscription Price for the Corporate Sponsored Nominee?
Ā£0.88. As the Capital Increase is being made under Spanish law, the Subscription Price is set in Euros at ā¬0.92. This has been converted to a
sterling (GBP) amount for the Corporate Sponsored Nominee at an exchange rate of 1.0464 (GBP/EUR). At the end of the subscription period,
subscription monies will be converted to Euros in order for the aggregated Subscription Rights to be taken up in the Capital Increase on behalf
of holders in the Corporate Sponsored Nominee Service.
https://www.iairgroup.com/~/media/Files/I/IAG/capital-increase-documents/en/shareholder-guide.pdf
Details of the Capital Increase
ā¢ The subscription price of ā¬0.92 per New Share represents a discount of 35.9% to the TERP
(theoretical ex-rights price) of ā¬1.44 per share by reference to the closing price on 9 September
2020 (the last business day before this announcement).
I just spoke to support and apparently if you donāt subscribe you will be payed the difference between 88p and the market price on the 21st September per share. Does this sound right?
āAll my savings in IAGā 
@PeterA Thank for responding. Not to mention the loss you make via the additional transactions and the risk you take selling and debuting if you have an ISA with a significant holding of IAG you are stuffed. It is entirely possible to allow the rights to be moved and is purely a Trading 212 restriction that is causing this issue. I though this was supposed to be a modern platform. A paper based ISA manager would offer a better service.