Rights issue Rolls Royce

How does this work? If I have shares do I get a notification in T212 asking me if I want to participate in advance of the issue date?

Thanks homies.

Yes - or at least you should. Some new brokers are pretty bad at some corporate actions. I’ve never seen the ‘rights’ credited to my account(s) but I have been asked if I want to take up the rights. So 50% ok, 50% terrible as I was unable to trade the Rights.

RR. Issue is pure speculation right now, right?

I’ve seen no official disclosure

Rather than a complex rights issue they may just opt to run a non preemptive placing … probably via PrimaryBid… queue the questions (again) about using that platform… queue my repeated noise (again) about ‘please do the maths people, this is not the pot of gold you think it is’

And so the merry dance continues


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Ok thanks Finki. I already own shares in RR so I’d take up the offer as from my understanding they’d probably be discounted and this would reduce the financial loss due to dilution slightly?

Correct speculation, I think this will happen if they can’t sell something like ITP aero.

Finki what does this mean precisely?

Don’t get it, RR don’t have 37bn of anything…

I assume they plan for sales in USD. Because I assume they report in another currency, say, GBP they take out contracts to mitigate the fx risk.
They now have chosen to close them out because of their view of USD and bring the money back - I assume - onto the balance sheet and available to deploy strategically elsewhere…