Pennon Open Offer closing today

[kempiejon]

Pennon are offering us PIs a chance to participate in an open offer. But you've got to be quick, the announcement came from AJ Bell that I have until close of business today to participate. https://otp.tools.investis.com/clients/ ... id=1747172

I don't usually act quickly on a purchase but have a bit of cash in that account to mop up, offer looks like a discount so I will be weighing it up this afternoon. PNN have returned cash and rebased the dividend such that annual pay out shows a decline over 5 years, I am tempted to let them off that apparent cut. They now yield 5.5% or so.

[Gerry557]

That was a very quick offer. Apparently it closed before 11.00

Not much time for PIs to involved in. I was out today and it was closed before I even looked at it.

They expect a small discount of about 2% or around 730p. Mr Market might offer more on a bad day.

So I was too late anyway without all the primary bid faff and then trying to get it inside an ISA.

I would be interested to hear how that process works. They say they work with Interactive Investor. There was nothing on that website but that might be because I was too late.

[Dod101]

So once again the average private investor has been diluted. Not really the fault of Pennon I suppose but Primary Bid does not seem to work all that well.

No doubt these Open Offers are much cheaper and less hassle than the traditional rights issue which we hardly ever see nowadays.

Dod

[Alaric]

They say they work with Interactive Investor. There was nothing on that website but that might be because I was too late.

ii implied that it would have been flagged as a Corporate Action but the flag would be removed when the offer closed.

[kempiejon]

So I was too late anyway without all the primary bid faff and then trying to get it inside an ISA.

I would be interested to hear how that process works.

I decided to take up the offer. I had a bit of money in that account, not as much as I usually put towards a purchase and this time of year is a low for dividends so it would be a while before I could get that money on to the market. The process seemed easy enough, AJ Bell sent me the following details

If you’d like to take up this Retail Offer, here’s what you need to do:

Log in to your account and make sure you’ve enough available cash for the amount you’d like to invest (adding more if you need). You can only apply for shares if you’ve enough available cash in your account. Please note: applications for this Retail Offer can only be made through the website
From ‘My account’, select the ‘Buy and Sell’ page
Enter this stock code – NEWACC2 – into the search bar, then select the stock that appears. Please note: this code has been created solely for this Retail Offer, so you’ll need to use this specific code
Enter the amount of money you’d like to invest. Once you’re happy, click to place the order

We’ll then place your application as a cash amount. Please note that the minimum investment is £250.

Keep in mind that this Retail Offer will close later today, at the discretion of the issuer and may close earlier depending on demand. Submitting your order doesn't guarantee that any shares will be allocated to you.

So I applied yesterday, followed the instructions, it seemed easy though the window for making the decision was limited. If I was away yesterday morning I wouldn't have been able to get involved. I checked this morning and the order is still pending. As Gerry557 said the suggested discount of 2% to around 730p would be lost in the noise of the past couple of days and actually I still do not know if or how many share I will get or at what price.

I have used Primary Bid before and this broker activity has been easier but it's not finished yet.

[kempiejon]

To close this with the final details. I applied for this to use up all the cash I had in that account, only about 30% of a normal purchase. I was then scaled back on that about 10% of what I applied for. There was no stamp and £0.00 fee for dealing on the contract note so I did I skip that drag cost. The shares were issued at 730p (closed today 744) which was in the region of an available price that day and this but looks like a low on the month so a slight profit.

[Gerry557]

To close this with the final details. I applied for this to use up all the cash I had in that account, only about 30% of a normal purchase. I was then scaled back on that about 10% of what I applied for. There was no stamp and £0.00 fee for dealing on the contract note so I did I skip that drag cost. The shares were issued at 730p (closed today 744) which was in the region of an available price that day and this but looks like a low on the month so a slight profit.

Thanks for the update on the process. It does seem you had to be on the ball at the right time. It was almost like trying to benefit from a fat finger trade.

I might look out for another offer just to see what ii show on their website should I be interested in the future.

Strangely I noticed the price had fallen below the 730 mark albeit with costs.

I don't think management did PI's any favours the way this went ahead but then again I don't think that I missed much either and possibly get more shares cheaper later on. Apparently there was an article that questioned the merits of deal.

I might have a search to see what management were thinking of why this was a good deal.

[Dod101]

This seems to be more of a rescue mission than a good business deal. You would think that Pennon like the other water companies had enough on its plate without buying another company short of funds.

Dod