Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

UKW payment

For discussion of the practicalities of setting up and operating income-portfolios which follow the HYP Group Guidelines. READ Guidelines before posting
Forum rules
Tight HYP discussions only please - OT please discuss in strategies
Arborbridge
The full Lemon
Posts: 10369
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

UKW payment

#463942

Postby Arborbridge » December 7th, 2021, 6:21 pm

I notice there is a small payment in my account from "UKW provisional excess shares".

I suppose it's something to do with the recent open offer, but I don't know why it's provisional, neither do I know how I should account for it. Is it a special? is it an adjustment?
No doubt others have had this too.
It is very small, so perhaps as regards unit price or dividends, it can just be ignored?


Arb.

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: UKW payment

#464024

Postby monabri » December 7th, 2021, 9:47 pm

No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.

(Chat about UKW on ADVFN )

https://uk.advfn.com/stock-market/londo ... share-chat

( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).

MDW1954
Lemon Quarter
Posts: 2358
Joined: November 4th, 2016, 8:46 pm
Has thanked: 526 times
Been thanked: 1011 times

Re: UKW payment

#464070

Postby MDW1954 » December 7th, 2021, 10:50 pm

monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.

(Chat about UKW on ADVFN )

https://uk.advfn.com/stock-market/londo ... share-chat

( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).


Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.

So definitely not a special!

MDW1954

Arborbridge
The full Lemon
Posts: 10369
Joined: November 4th, 2016, 9:33 am
Has thanked: 3601 times
Been thanked: 5227 times

Re: UKW payment

#464131

Postby Arborbridge » December 8th, 2021, 7:16 am

MDW1954 wrote:
monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.

(Chat about UKW on ADVFN )

https://uk.advfn.com/stock-market/londo ... share-chat

( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).


Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.

So definitely not a special!

MDW1954


It looks like that is the explanation, but it's a confusing way of logging it, though I can see why. Common sense would say: "just charge me for the shares I bought". In practice I think they had to pay for the shares upfront, and then refund the 15% scale back. The only thing is, they might have given a more transparanet label than "provisional excess shares" .

OK. It's clear now - it's just a refund of cash not required.

Thanks, both, for your help.

Arb.

Gengulphus
Lemon Quarter
Posts: 4255
Joined: November 4th, 2016, 1:17 am
Been thanked: 2628 times

Re: UKW payment

#464224

Postby Gengulphus » December 8th, 2021, 12:59 pm

Arborbridge wrote:
MDW1954 wrote:
monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.

(Chat about UKW on ADVFN )

https://uk.advfn.com/stock-market/londo ... share-chat

( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).

Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.

So definitely not a special!

It looks like that is the explanation, but it's a confusing way of logging it, though I can see why. Common sense would say: "just charge me for the shares I bought". In practice I think they had to pay for the shares upfront, and then refund the 15% scale back. The only thing is, they might have given a more transparanet label than "provisional excess shares" .

OK. It's clear now - it's just a refund of cash not required.

Just to add that it's the normal way companies process applications for newly-issued shares in cases where applications might get scaled back: the company insists on applications being accompanied by cash to pay for the full number of shares applied for, then it delivers the shares the application was successful in getting plus the cash that would have paid for the shares it didn't succeed in getting. It's basically the only way the company can ensure that everything goes smoothly, no matter how much or how little applications end up being scaled back.

And so brokers find themselves having to pay out the full amount for the application to the company, and then later pay back the 'change' when the company sends it back. The only way they could provide their clients with a 'just charge me for the shares I bought' option is by borrowing the money between the time the client applies and the time it becomes clear how many shares the application has successfully obtained, and that would expose them to all sorts of legal and financial risks. I'd imagine some brokers might offer accounts with that sort of short-term borrowing facility built in - but I'd also imagine that they're not cheap online brokers, and also that the accounts they offer don't include ISAs and SIPPs for regulatory reasons.

Gengulphus

funduffer
Lemon Quarter
Posts: 1328
Joined: November 4th, 2016, 12:11 pm
Has thanked: 122 times
Been thanked: 831 times

Re: UKW payment

#464682

Postby funduffer » December 10th, 2021, 8:25 am

The fact that the share issue is over-subscribed is a good sign of confidence in the company.

I hold UKW, but did not subscribe this time (but did last time), but I am pleased to see it was over-subscribed.

FD


Return to “HYP Practical (See Group Guidelines)”

Who is online

Users browsing this forum: Google Adsense [Bot] and 17 guests