The Lemon Fool

Any holders planning on taking this up?
Any thoughts?

The WRAP Retail Offer is being undertaken alongside a placing (the "Placing") of new ordinary shares in the Company ("Ordinary Shares"). The new Ordinary Shares to be issued in connection with the WRAP Retail Offer and the Placing will be issued pursuant to the Company's existing shareholder authorities granted at the Company's AGM held on 27 June 2023. Any Shares issued pursuant to the Placing and WRAP Retail Offer will be issued at a price equal to a 0.75% premium to the last published cum-income NAV per Share prior to the Fundraising close (the "Issue Price"). The Issue Price is expected to be announced on 6 February 2024.

Not a clue what you're talking about. Please post a link or at least name the company involved.

Thank you.

GS

GoSeigen wrote:Not a clue what you're talking about. Please post a link or at least name the company involved.

Dilution. Not advised yet by ii.
Dilutions are annoying. But at least we PIs have the opportunity to participate.

V8 (holder)

Is it a dilution? Aren't they issuing more shares at a market price in order to buy more bonds and expand the size of the fund?

GoSeigen wrote:Not a clue what you're talking about. Please post a link or at least name the company involved.

Thank you.

GS

Sorry, should have posted a link rather than a snip. Thanks to Xfool

oldgamerz wrote:Any holders planning on taking this up?
Any thoughts?

The WRAP Retail Offer is being undertaken alongside a placing (the "Placing") of new ordinary shares in the Company ("Ordinary Shares"). The new Ordinary Shares to be issued in connection with the WRAP Retail Offer and the Placing will be issued pursuant to the Company's existing shareholder authorities granted at the Company's AGM held on 27 June 2023. Any Shares issued pursuant to the Placing and WRAP Retail Offer will be issued at a price equal to a 0.75% premium to the last published cum-income NAV per Share prior to the Fundraising close (the "Issue Price"). The Issue Price is expected to be announced on 6 February 2024.

Moderator Message:
Moved to Company Share News. If anyone can see a better place for this, please point it out (chas49)

I am interested, but iWeb hasn't offered me the opportunity and the guy I spoke with there says they know nothing ........ has anyone had an offer through their broker?

bruncher wrote:

oldgamerz wrote:Any holders planning on taking this up?
Any thoughts?

The WRAP Retail Offer is being undertaken alongside a placing (the "Placing") of new ordinary shares in the Company ("Ordinary Shares"). The new Ordinary Shares to be issued in connection with the WRAP Retail Offer and the Placing will be issued pursuant to the Company's existing shareholder authorities granted at the Company's AGM held on 27 June 2023. Any Shares issued pursuant to the Placing and WRAP Retail Offer will be issued at a price equal to a 0.75% premium to the last published cum-income NAV per Share prior to the Fundraising close (the "Issue Price"). The Issue Price is expected to be announced on 6 February 2024.

Moderator Message:
Moved to Company Share News. If anyone can see a better place for this, please point it out (chas49)

I am interested, but iWeb hasn't offered me the opportunity and the guy I spoke with there says they know nothing ........ has anyone had an offer through their broker?

Yes it appears in II's list of IPOs. If i had cash in my ISA I'd have been interested.

bruncher wrote:Is it a dilution? Aren't they issuing more shares at a market price in order to buy more bonds and expand the size of the fund?

Of course it is a dilution if you do not take up a proportionate share of the new shares being issued. It does not matter what the Directors do with the proceeds you will still have a modestly smaller economic ownership of the fund than you did. Note also that the new shares are to be issued at a modest premium (0.75% ?) to the NAV. Great for existing holders; not quite so good for buyers of the new shares.

Dod

Dod101 wrote:

bruncher wrote:Is it a dilution? Aren't they issuing more shares at a market price in order to buy more bonds and expand the size of the fund?

Of course it is a dilution if you do not take up a proportionate share of the new shares being issued. It does not matter what the Directors do with the proceeds you will still have a modestly smaller economic ownership of the fund than you did. Note also that the new shares are to be issued at a modest premium (0.75% ?) to the NAV. Great for existing holders; not quite so good for buyers of the new shares.

Dod

I understood a dilution as an action which reduced the value of my shares. This doesn't do that and arguably a bigger fund has more clout and and each share thus becomes more valuable. Isn't this also an opportunity to purchase shares without paying stamp duty (and maybe dealing fees)?

Dod101 wrote:

bruncher wrote:Is it a dilution? Aren't they issuing more shares at a market price in order to buy more bonds and expand the size of the fund?

Of course it is a dilution if you do not take up a proportionate share of the new shares being issued. It does not matter what the Directors do with the proceeds you will still have a modestly smaller economic ownership of the fund than you did. Note also that the new shares are to be issued at a modest premium (0.75% ?) to the NAV. Great for existing holders; not quite so good for buyers of the new shares.

Dod

Not really much in it (commenting on the last line) - the shares sit at a modest premium at the moment and the price of the placing is a slight discount to what you can buy BIPS at in the market (or was when I looked earlier in the week). I checked when I saw I could take part in the placing at II as I am interested, except I don't have cash available at the moment in my ISA and with the placing being at a premium to NAV I wondered if you could buy for less in the market.

bruncher wrote:

Dod101 wrote:
Of course it is a dilution if you do not take up a proportionate share of the new shares being issued. It does not matter what the Directors do with the proceeds you will still have a modestly smaller economic ownership of the fund than you did. Note also that the new shares are to be issued at a modest premium (0.75% ?) to the NAV. Great for existing holders; not quite so good for buyers of the new shares.

Dod

I understood a dilution as an action which reduced the value of my shares. This doesn't do that and arguably a bigger fund has more clout and and each share thus becomes more valuable. Isn't this also an opportunity to purchase shares without paying stamp duty (and maybe dealing fees)?

A dilution in the context of a fund raising will occur if an existing shareholder does not take up a proportionate share of the new shares being issued. Think about it this way. There are 100 shares in issue of which you hold 5. Thus you have a 5% shareholding and ownership of the company. The Directors then decide to raise more capital by offering existing and new shareholders a further 25 shares. If you do not take up this offer you will then have 5 shares out of 125 shares in issue, equivalent to 5/125ths of the total rather than 5/100 of the total. That is the dilution effect that we are discussing. Sure, the company will have extra capital but that is a separate issue. It need not reduce the value of your shares but you will own a smaller share in the company than before.

Dod

daveh wrote:

Dod101 wrote:
Of course it is a dilution if you do not take up a proportionate share of the new shares being issued. It does not matter what the Directors do with the proceeds you will still have a modestly smaller economic ownership of the fund than you did. Note also that the new shares are to be issued at a modest premium (0.75% ?) to the NAV. Great for existing holders; not quite so good for buyers of the new shares.

Dod

Not really much in it (commenting on the last line) - the shares sit at a modest premium at the moment and the price of the placing is a slight discount to what you can buy BIPS at in the market (or was when I looked earlier in the week). I checked when I saw I could take part in the placing at II as I am interested, except I don't have cash available at the moment in my ISA and with the placing being at a premium to NAV I wondered if you could buy for less in the market.

As you say there is not much in it but these things nibble away at your holding and if repeated often enough will have a noticeable effect.

Dod

There's an RNS about the offer here https://www.londonstockexchange.com/new ... r/16320874

168.4p per share. Offer closes on Wednesday at midday. I'm not sure that this offer price is available for smaller investors? It says retail so that excludes us doesn't it?

Coobster wrote:There's an RNS about the offer here https://www.londonstockexchange.com/new ... r/16320874

168.4p per share. Offer closes on Wednesday at midday. I'm not sure that this offer price is available for smaller investors? It says retail so that excludes us doesn't it?

Retail investors include the likes of you and I, as opposed to institutional investors.

Dod101 wrote:

daveh wrote: Not really much in it (commenting on the last line) - the shares sit at a modest premium at the moment and the price of the placing is a slight discount to what you can buy BIPS at in the market (or was when I looked earlier in the week). I checked when I saw I could take part in the placing at II ...

As you say there is not much in it but these things nibble away at your holding and if repeated often enough will have a noticeable effect.

The offer is capped at £15mio vs a market cap of £311 mio so about a 5% dilution.
The price is 168.4p which is a small discount to the current SP.

I have lobbed in around 8%.

I am not very pleased with ii. As a holder I would have expected a notification about this. I never look at their IPO page and had it not been for this topic I would not have known, so I shall be complaining.

V8

88V8 wrote:The offer is capped at £15mio ...

They raised £13.35mio so it was undersubscribed.

No response yet from ii to my moan about not being given a heads-up.

V8

88V8 wrote:I am not very pleased with ii. As a holder I would have expected a notification about this. I never look at their IPO page and had it not been for this topic I would not have known, so I shall be complaining.

I have to say, I am still a certificated holder in BIPS and even I didn't get any communication on the matter. Unless it was lost in the post!

I hold my BIPS shares with IWEB and I didn't receive any Corporate action notification either.

Coobster wrote:I hold my BIPS shares with IWEB and I didn't receive any Corporate action notification either.

ditto