Breelander wrote:Gengulphus wrote:Probably also worth adding that the ticker for the rights is KIEN ... that's the ticker to use for on other websites (or again, will be at least once the admin is up to date).
Bloomberg are the only site other than the London Stock Exchange that seem to list the nil paid KIEN so far. ...
ADVFN did at the time I posted that, at least for their quotes page. I checked out of interest, as I think this is the first time since I understood the theory that I've seen a rights issue in which the share price has dropped to close to the subscription price and then jumped around near it, which is the situation in which the short-term trading value of the rights is highest, so I was curious roughly how much it would be...
The current answer is that the KIE closing price is 407.8p and the KIEN closing price is 9.503p. So acquiring a share by straightforward buying currently costs 407.8p and acquiring one by buying a right and taking it up costs 409p+9.503p = 418.503p, which is 10.703p more. That 10.703p is essentially short-term trading value: it reflects the fact that if you buy the right with the intention of taking it up just before the rights issue closes at 11 am on the 19th (*), you can basically limit your loss to just the 9.503p if the share price falls below 409p before then by deciding not to take them up after all, no matter how far it falls.
(*) Delaying the decision that long is probably only possible for certificated holdings and if you can deliver the documents by hand to the registrar, or in CREST accounts for which one provides input to the CREST system oneself. That's basically limited to professional traders: those with nominee accounts will definitely have an appreciably earlier broker deadline, as will those who have retail CREST accounts (i.e. 'sponsored' CREST accounts, where the sponsoring broker provides input to the CREST system). But although that means that the December 19th deadline is irrelevant to what almost all ordinary shareholders can do, it is relevant to understanding the trading effects on prices.
Gengulphus