TUI AG Rights Issue

📊 Investing
83

Probably a moot point now, given that the deadline has passed but…
So long as you don’t take the money out of the ISA you can buy and sell as you please, it won’t affect your allowance. Only putting in new funds will count.

84

When will I recieve my right issues?
I bought them on 8 jan 2021 and have nothing received. When will I do??? It’s a lot of money and i can’t find any information of the tui rights on the trading 212 platform

86

Sorry, you won’t receive them it seems. Your answer can be found in below Q&A:

87

Thats not what i asked, i have recieved a mail and payed for the right issues. But the money is gone and i cant find the right issues. So where are my right issues where i payed for?

88

You will need to wait until the shares are actually issued to Trading 212 before they can then be allocated to your account. According to the Trading 212 article on this:

Allocation of newly issued shares will happen after the 29th of January, and should 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.

For full details, give this a read:

https://helpcentre.trading212.com/hc/en-us/articles/360017077698-TUI-AG-TUI-TUI-TUI1-Rights-Issue-12th-of-January-

1 Like
89

Thanks for ur help mate!

90

Oh, my apologies. I misread your question, good to see that it is answered now.

1 Like
91

I have a question since I started trading pretty recently.
How is it possible the stock price to raise while it is expected stocks of 1.07€ to be placed on the market? Wouldn’t it be more logical for the stock price to drop?

92

I’m not 100% sure what you’re asking, so I’ll answer both of my interpretations.

  1. There is a thing called the Theoretical ex-rights price (TERP) which is calculated using the total market cap plus the value of newly issued shares, divided by the total count of the shares after the rights issue. This gives you a value of what each share should be worth, in every case I can think of, this value is always lower than the current share value, and that makes sense, the only way a share issue could result in a TERP higher than the current value would be if the company did an offering at a price higher than what the shares currently traded at, and if they did that, why would any one subscribe to the offering.

That said, TUI shares didn’t drop to what they “should” have dropped to, so effectively they went up in value, when you take into account the fact anyone owning one can now buy a cheap share. We discussed that earlier in the thread: TUI AG Rights Issue - #75 by xiano8494

  1. Why is the share price going up when the market is about to get flooded with “cheap” shares? I guess the simplest answer is, people feel the company is worth investing in. While the shares haven’t been issued yet, the effect of them being issued has already been priced in (see the actual share price drop on the 8th, not Googles adjusted chart). Of course, on/around the 29th, when the shares are actually made available, there might be a load of people who choose to immediately sell and take their profit from the rights issue, which could push the price down. Just worth noting, any shares that are not taken up in the rights issues are underwritten, so they won’t be offered to the open market at the offer price.
1 Like
93

Thank you very much for the explanation !

94

Hi Xiano,

I saw that you answer really quick on this topic . I have 334 shares of TUI at the Price of 4.77 Euro . I will receive after 292 shares at the price of 1.07 euro . After that I will have 626 shares . At the moment I am 18% down . What do you think will happen next ? After I made the calculation I will have profit but not that big. The price will fall definitely after the issues will go in everybody’s account but after a big loss of price or growth it’s normally to have a stock correction . I estimate that the price for my stocks will be 2,5 euro . Should I go for the small profit ? Or wait a couple of months ?

Thank you
Alex

95

Hi,
I guess the short answer, if you think the shares are going to fall to €2.5, is to sell now and then buy back after (assuming you think they’re overall a good long term play)

The correction due to the rights issue has already happened, albeit not as dramatic as expected. There may be a reduction in price when the shares become available due to a load of people taking profit, but that remains to be seen. (Read my notes on TERP and the “flood” of cheap shares above TUI AG Rights Issue - #92 by xiano8494)

My personal opinion? I’m holding long term. I think, given their debt restructuring and the fundraising, that they’ll be fine once the restrictions begin to lift. I suspect there will be some pent up demand for holidays and TUI will stand to benefit. That said, there is a lot of bad news coming out at the moment, I’m just hoping it will be short term.

1 Like
96

Hi Xiano ,

If the correction already happened then I will keep the shares . I studied every year and from March to May a lot of people are buying vacation packs and those months are the profitable ones for travel stock. I think that after I receive the rights I will have a good price combined with my stocks already and my goal is not to lose money with TUI. Even if I have +1 euro I am satisfied so I will wait a couple of months more . I predict that the outcome of the situation will be one of the followings :

  1. After I receive them I can sell and have 600 - 700 euro profit
  2. Wait and if it drops a lot sell them without any loss or profit
  3. Wait and the share price goes up and have a good profit considering that the median after I receive the price will be around 2.5 euro .

Thank you for the quick answer

97

Hey, In the notification they said, if I do nothing they sell the Tui Rights for me and credit me for the sum. It’s now 8 days later and I didn’t got any money, is this normal? What’s about you guys ?

98

You’ll receive your credit on the 29th.

1 Like
99

Is there a way to find out how much money you would receive if you do nothing and let 212 sell your rights? Does it work out to be the same as you would get from buying the new shares and selling, or is there some commission lost along the way?

100

There isn’t somewhere that will tell you what it is, as the shareprice is fluctuating.

As I understand it, they will essentially sell your shares on the market, deduct the cost of the rights and give you the difference. I don’t imagine they will take a commission, the disadvantage is that you don’t get to choose when they sell, so if there is a dip on the open as all of these shares make it on to the market, you’ll get caught up in that.

Looking at what I received in a previous rights issue that I didn’t take up, that is essentially what happened to me.

As a side note, the future tense of your question makes me think that you think you still have the option of either taking them or not. You do not, the deadline has passed.

101

Hopefully T212 adds the shares today as expected.

102

The notification did say from the 29th, but they’ve always been pretty quick in the past.

103

Haven’t received mine