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IPO - Octopus Renewables Infrastructure Trust
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- The full Lemon
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Re: IPO - Octopus Renewables Infrastructure Trust
OK, I think I'm probably in for this one with spare cash in the ISA. Despite Octopus's poor track record with its renewables VCTs!
The offer will be at a modest premium after offer costs, but much less than the current market level of premia. On the downside, Octopus's portfolio looks higher-risk than the long-established funds, with a much higher proportion of assets under construction - at least so far as I can tell from limited sampling of the prospectus.
The offer will be at a modest premium after offer costs, but much less than the current market level of premia. On the downside, Octopus's portfolio looks higher-risk than the long-established funds, with a much higher proportion of assets under construction - at least so far as I can tell from limited sampling of the prospectus.
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- Lemon Half
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Re: IPO - Octopus Renewables Infrastructure Trust
UncleEbenezer wrote:. Despite Octopus's poor track record with its renewables VCTs!
Octopus is a brand name in VCTs . Does it offer any other ITs?
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Re: IPO - Octopus Renewables Infrastructure Trust
Alaric wrote:UncleEbenezer wrote:. Despite Octopus's poor track record with its renewables VCTs!
Octopus is a brand name in VCTs . Does it offer any other ITs?
Indeed, Octopus has not merely different VCTs, but also entirely different VCT management teams. Some of the VCTs have decent enough track records, but the renewables-focussed ones (Octopus 3&4 twins) didn't. And that's in a sector where their peers Foresight Solar, Ventus, and Hazel/Gresham House have done nicely for investors.
I don't know what else they offer that has a track record you or I could check. This IPO will obviously lead to one in due course.
[edit] Looks as if the renewables VCTs achieved better outcomes than I'd realised - though still below par for the sector: https://www.globenewswire.com/news-rele ... sults.html
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Re: IPO - Octopus Renewables Infrastructure Trust
Octopus ran a GP surgery REIT called MedicX which failed to prosper and was taken over by PHP. Despite that rather less than inspiring IT history I still find the IPO interesting not least because of greater geographical exposure including Australia (there ought to be plenty of sun there). I have bid for shares at Launch through HL who are offering a 0.5% bonus if bought through them
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- Lemon Slice
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Re: IPO - Octopus Renewables Infrastructure Trust
I read the prospectus plans for gearing and debt.
Octopus are to allow up to 40% of NAV for gearing and a further 20% short term debt. That seem a bit overwhelming for me at first read.
Does anyone know if that is in line with allowances of other infrastructure and renewables ITs?
For the current situation I listed the AIC category filter for renewables and infrastructure where one company, Greencoat Renewables, stands out at 67% gearing, Greencoat UK wind has 26%, one other has 5% and the rest 0.
Anyone any opinions on this?
midgesgalore
Octopus are to allow up to 40% of NAV for gearing and a further 20% short term debt. That seem a bit overwhelming for me at first read.
Does anyone know if that is in line with allowances of other infrastructure and renewables ITs?
For the current situation I listed the AIC category filter for renewables and infrastructure where one company, Greencoat Renewables, stands out at 67% gearing, Greencoat UK wind has 26%, one other has 5% and the rest 0.
Anyone any opinions on this?
midgesgalore
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Re: IPO - Octopus Renewables Infrastructure Trust
Oversubscribed so allocations are scaled back. I went for 15000 and received 11264 including 0.5% bonus from HL. Bodes well for a premium perhaps.
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- Lemon Quarter
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Re: IPO - Octopus Renewables Infrastructure Trust
ReallyVeryFoolish wrote:everhopeful wrote:Oversubscribed so allocations are scaled back. I went for 15000 and received 11264 including 0.5% bonus from HL. Bodes well for a premium perhaps.
Indeed, though I only took a small position not thinking it would be scaled back, not for a minute. To only get about 75% of what I asked for is disappointing and means the holding isn't really worth having in some ways. It is now only a quarter of my normal minimum holding rather than around the one third of a normal holding it would have been. I generally don't have small holdings, preferring a few larger ones. Anyway, time will tell. It is a useful diversifier which is why I bought into it.
See there is now an allocation at £1.035 per share and a guarantee of 8 new Ordinary Shares for every 29 held and no dealing charges.
https://otp.tools.investis.com/clients/ ... id=1482486
Thoughts?
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- Lemon Half
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Re: IPO - Octopus Renewables Infrastructure Trust
supremetwo wrote:See there is now an allocation at £1.035 per share and a guarantee of 8 new Ordinary Shares for every 29 held and no dealing charges.
ii have it at that price as a straight IPO as well.
They quote charges and costs as being 1.8% per year.
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- Lemon Quarter
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Re: IPO - Octopus Renewables Infrastructure Trust
From the BBC:
https://www.bbc.co.uk/news/business-58713503
A clean energy investment fund run by former US vice-president Al Gore has bought a 13% stake in British energy company Octopus in a deal worth £438m.
It means the supplier is now valued at £3.36bn, which is more than the owner of British Gas, Centrica, at £3.28bn.
The agreement comes after several UK energy suppliers have gone bust due to soaring wholesale prices making price promises to customers undeliverable.
Octopus is to use the cash injection to boost its green energy production.
Mr Gore's firm, Generation Investment Management, will initially make an investment of £219m, followed by a further £219m by June next year, subject to certain conditions, Octopus said.
As well as Generation Investment Management funding, Australian firm Origin Energy, which took a 20% holding in Octopus in May 2020, is also planning to inject a further £36.5m into Octopus to maintain the size of its shareholding.
Established less than six years ago, Octopus supplies 3.1 million households, and has operations in the US, Japan, Germany, Spain, New Zealand and Australia.
It currently creates enough green energy to power about 1.5 million homes and its Kraken technology, which enables customers to access power when it is cheaper and greener, has also been licensed to rivals.
https://www.bbc.co.uk/news/business-58713503
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