Rolls Royce Rights Issue

We’ve already sent out a platform message & subscription offer to all eligible clients. Below, I will share some details regarding this particular event and how we’ll proceed with it.

On the 28th of October, Rolls-Royce Holdings Plc commenced the subscription period of its rights issue as a part of their capital raise.

The requirement for participation in the rights issue by the RR shareholders is as follows: For each 3 existing shares of RR held before the market open on the 28th of October, its holders are entitled to 10 subscription rights and 1 right is required to subscribe for 1 New Share. The offer is also applicable to all shareholders eligible for receiving at least 1 new share (Based on the 10:3 ratio)

The price for subscription per share is: 0.32GBP

Allocation of newly issued shares will happen after the 12th of November.

If you wish to subscribe, the amount needed will be deducted from your free funds immediately and held until the new shares are issued and distributed. You can exercise your choice until the 4th of November.

If you decide not to participate, your rights will be sold on 5th of November at the market and the proceeds will be distributed shortly after to your account.

Once the decision is applied, the action is non-reversible.

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@Martin like I said, I was totally confident that you guys would have done it right. You’re awesome!

I just have one question: if I would not like to buy the additional shares, my right would be sold at the market… Can you please ttell me how much I would receive, in that case?
Thank you!

Thanks Martin, I’ve had my notification and I’m trying to subscribe but I receive the error message below - can you advise what to do?

Dazza I’m getting exactly the same- will see what 212 come back with :+1:

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I’m sure they will get it sorted in time for us to exercise our rights.

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I Will try explain this best i can as i had the same issue basically any free shares money (if you are within 30 days) and if your account is running at a loss then you cannot use they funds for the rights issue the easy way to check is try going to withdraw, the amount there has to be greater than your rights issue i could go into a lot more depth but that is what was my issue hope that helps

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I had this problem with a previous rights issue. All you need to do is make sure you have the correct amount of free funds in your account to cover the new shares, however much it tells you in the notification they sent.
In my case it showed I had enough free funds but still wouldn’t work. Apparently this was something to do with a free share I received less than a month prior to said RI (it’s complicated).
You might just need to pop some more money in to cover the cost of new shares. Hope that helps…

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Sorry, I should’ve read your reply before post basically the same thing :woozy_face:

When you say this was related to a free share, was it that you sold a free share within the last 30 days and had the funds in your account?

How did this get resolved for you? Was it automatic?

Did you get to exercise your rights?

I’m quite worried about missing the deadline in light of the technical issues; I’ve not benefited from a rights issue before so don’t have experience of the process for Trading212.

Basically while I put in the full amount to cover the rights issue the problem was related to the fact that i had received some money from free shares and the portfolio was running at a slight loss. If I went into the manage funds section it showed me that I couldn’t withdraw the full amount I had just put in. Now I could have waited for the markets to opened and sold some shares to make up the difference (be careful here because if you got a free share in company X within 30 days then sold it to buy shares in company Y you couldn’t use the funds from selling these shares) basically I just added even more money to make up the shortfall and I could participate in the rights issue instantly. Clear as mud I know

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Easiest way I can suggest you try is go to manage funds and withdraw in here it will tell you how much you can withdraw from your investment account for example (note this may differ from free funds) if that amount noted in the withdrawal is below the amount you need to participate in in the rights issue that maybe where the problem is. I think some people are getting confused between free funds and what they can withdraw at that time

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Absolutely spot on raph - I just added funds so that my pot was larger than my recently sold free share and the amount of rights available, and the link worked :+1: thanks for taking the time to explain everyone :sunglasses:

Excellent advice, this was the issue. I’ve topped up more funds and have now secured my rights.

Thank you for your help and advice.

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@Martin Sorry to bother you again, but I have to ask you once again, if I don’t do anything my rights will be sold, and I will receive the proceed… But how can I calculate how much I will receive?
Thanks! Mario

Hello @Telemario,

This depends on the market price of the rights at the moment of the sale. You can track the price of the nil paid rights here:

Hi All,

I got the email for the rights issue last night and have successfully subscribed by simply following the link. It was quick and easy providing there are sufficient free funds in your account. This is the second tights issue I’ve had in a month and I must say T212 makes it quick and easy so thanks for the great service.

Happy investing,

Darren

My Pie

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I hold 1500 RR shares for months and also at close of business on 23 October 2020.
I also hold on 26 October , but I sold Tue 27 Oct before closing bell cause I wanted to avoid 28 Oct morning drama with trading ex-rights…
However it seems I am not entitled to get 32p shares, so the above TimeTable of Principal Events was misleading and wrong :frowning:

Can anyone tell me what will happen on the 12th. Will LSE adjust the RR stock price to take into account the new rights that have been issued.

Hello I’m so new to this I have inherited my late fathers share portfolio including rolls Royce shares I only for the letter last week and I have no idea what to do about it, can anyone help me ?

Sorry for your loss.

Here is some information you might find useful about the rights issue: https://www.ii.co.uk/analysis-commentary/rolls-royce-rights-issue-all-you-need-know-ii513777.

Essentially, for every 3 shares you own you can purchase 10 shares for 32p per share. If you want to purchase, as soon as possible, you need to follow the in app instructions.