RR.L 10-to-3 Rights Issue

[ffp3_mask]

Rolls Royce plans a 10-3 rights issue for a 41% discount.

[Finki]

Got some time in hand though… end of October things start to happen:

Indicative summary timetable

• Record Date for entitlements under the Rights Issue

• Close of business on 23 October 2020

• Deadline for proxy appointments for General Meeting

• 11.00 a.m. on 25 October 2020

• General Meeting

• 11.00 a.m. on 27 October 2020

• Despatch of Provisional Allotment Letters (to Qualifying Non-CREST Shareholders only)

• 27 October 2020

• Existing Ordinary Shares marked “ex-rights” by the London Stock Exchange

• 8:00 a.m. on 28 October 2020

• Admission of, and dealings in, Nil Paid Rights commence on the London Stock Exchange

• 8:00 a.m. on 28 October 2020

• Latest time and date for acceptance, payment in full and registration of renunciation of Provisional Allotment Letters

• 11:00 a.m. on 11 November 2020

• Announcement of the results of the Rights Issue through a Regulatory Information Service

• By 8:00 a.m. on 12 November 2020

• Dealings in New Ordinary Shares, fully paid, commence on the London Stock Exchange

• 8:00 a.m. on 12 November 2020

[Willem]

Thanks @Finki
Really hope this stops the RR share price from plummeting, although I assume it will drop even further (at 115p at time of writing) just like the IAG shares did following their rights issue.
W.

[Finki]

It simply has to fall … there is very little way around it… a 10/3 issue at a discount = rr. falls. Somewhere they’ll disclose a TERP… or i could calculate it… BUT I’M DRUNK

[Gfclappah]

What is a Terp. Is it like a turnip?

[Finki]

Sadly not

It’s the approximate (given the prevailing winds) that RR will fall to (price wise) post distribution of the Rights.

Or to be accurate the Theoretical Ex Rights Price

Since the number of shares in issue changes … for a lower price… etc etc…

[Gfclappah]

Finki I’ve never been involved in a rights issue and forgive me for being such a novice but am I right in assuming, if we use IAG for an example. Your better off just buying shares after RI as price falls further anyway (most of the time?) That being if you want to avoid dilution.

Why does this tend to happen, surely IAG getting equity is only a good thing?

If we don’t buy into the rights issue won’t we be diluted 76~%? This being the case it’s probably worth investing if you still believe in RR?

Please critique me if I’m wrong which I probably am.

@Finki

[Finki]

@Gfclappah

Please critique me i

Yes and no and maybe
I’m a RR. holder and I’ll take up all my rights.
The price will fall but I’ll average out at approximately the TERP then ‘normal’ supply/demand/‘logic’ will resume and we’ll see which way the SP goes. If T212 actually credited the Rights to my account then I’d happily trade them and potentially take up more. But they (probably) won’t. But I will on other ‘fuller’ brokerage platforms - outside of my isa!

That’s not a critique.

Like I said - I’m trying to stay away from being some form of educator of Rights Issues. DYOR

But for now…and definitely after Ex-rights date… Down👇 There is literally no other things for the SP to do when marked ExRights sometime later this month

[Gfclappah]

Understand.

The fact you hold RR assures me a little more.

I will also be taking up my rights.

[Finki]

I nearly always take up any Rights issued

If your original reason for investing still holds and You don’t want to be diluted or take the lapsed rights cash proceeds

That’s not to say you should

[Gfclappah]

Thanks, I’ve just remortgaged and have the funds on standby.

Joke.

[Gregorypennington]

Hello all.

I also own Rolls stock, so we will definitely be able to use the rights issue on 212 is that correct?

I have 3k shares so I am looking to get 10,000 at 32p it this is possible, I know a few on HL have already received a message regarding the rights issue.
I’m rather new to 212, so hoping for a smooth operation?

Any help would be great.

Thank you.

[Gregorypennington]

Will trading 212 offer us the rights to get the stock at 32p? Hargreaves landsdown have already sent an email out to shareholders, is it simple with trading 212? I want to buy all that I can.

[Finki]

T212 are historically a little, er, slower at getting the messages out… hang tight… it’ll be with you soon…maybe!!!

And…in fairness, HL likely emailed about the “meeting” to approve the Rights Issue and the opportunity to vote on the action. Can’t imagine T212 doing this. Therefore T212 will notify you when the event is official and actually going ahead sometime much later this month.

Yeah, HL notification was the meeting… here’s the text…
Vote on whether the rights issue goes ahead
 
Rolls-Royce has announced plans to allow shareholders at the end of 27 October 2020 to buy 10 new shares for every 3 existing shares at a price of 32p per share.
 
This is called a rights issue and it’s a common way for companies to raise money.

 

It’s not decided whether the rights issue will go ahead yet. But as a shareholder, you can vote for or against these plans below. Please do so by <span class=“tmce_bold”>noon 21 October 2020. 
 
<span class=“tmce_bold”>Voting isn’t a request to take up the rights. If the rights issue goes ahead, we’ll be in contact with more details on how to take part.

[Gregorypennington]

But they are the same as say Hargreaves landsdown right?

In terms of I am not going to miss out on anything?

Thank you, as said all a little new to me.

[Finki]

You are missing nothing, as OFFICIALLY at least nothing has been decided… the Rights Issue will be passed or rejected at the meeting coming soon

Same Ords, same Rights

[arnob38]

Any idea’s when the shareholders are like to get the invitation for the vote?

[Finki]

Via T212 you won’t … or at least very unlikely

[Tefal]

Does anyone who’s taken part in a rights issue with t212 before know if you were able to take up the rights partially or is it all or nothing

[DNEO91]

I took part in the IAG rights issue and unfortunately it was all or nothing.