Mitie rights issue


So mitie have decided to issue new shares.

  1. I see these are at an issue price of 25p (anyone know where you can get these) or when they are available.

  2. Are these made available to the general public or are they just issued to current shareholders at the proposed ratio of 11 for every 5.

Trying to understand the process as I can see a lot of people have made money shorting this.

Hello @Gfclappah,

Access to the rights issue is given to shareholders who own the stock prior to the ex-date ( which is today - 14.07). So if you are holding positions on the stock you will be sent an email with the offer to participate.

What’s the benefit of participating or not?

You are able to buy the stock at a discounted price of 25p, whereas the current market price is ~ 50p

Why would anyone refuse? Sorry for the questions I’m just trying to understand and surely if you buy that stock at 25p, does this not affect the market? I guess either way shareholders have lost out with this dilution.

Is there a way you can get on the bear run or is this almost instantaneous as the market opens. I guess you could trade pre-market but I don’t really understand the liquidity or how it works

Is this people shorting? 8.00-8.35