Aveva (AVV) - Share Chat

This is now available!

As Carl mentioned, AVV is already available

80% growth in the last year. I got a share back at the beginning of December and is up 12%.

Any insight on Aveva?

I’ve been slowly adding Aveva over the last few months. Have been meaning to share thoughts about them for a while.

In many ways Aveva is a ‘boring’ company because it is not consumer-facing, but the long-term investment case is as compelling as any sexy tech company.

Their positioning statement is “driving the digitisation of the industrial world”. There is a clear alignment with global mega trends (internet of things, big data, AI) and the needs of their customers. Companies that are ‘industrial’ or in the B2B market are often way behind B2C companies when it comes to using digital. This diagram from their 2019 annual report summarises their potential nicely:

At work, some of the clients are industrial or have a B2B component, and they are all in this same position. There is massive potential for change in these kind of industries. Having merged with Schneider, they are now the dominant player in this sector.

Aveva also have an increasing amount of recurring revenue. Here is is from the 2019 annual report:

This has now jumped to 61%, as of November interim results:

image

Also from their interim reports in Nov, you can see revenue up, recurring revenue up significantly, and a return to profit:

The P/E is high at 140, but I think the long-term case is solid.

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Thanks for the information!

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-20% in a day :face_with_head_bandage:

https://www.businessweekly.co.uk/news/local-sharewatch/shares-rocket-aveva-almost-doubles-profits-year

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What are people’s thoughts on Aveva’s potential acquisition of OSIsoft and how it would benefit Aveva? Would the share price drop similar to when Aveva and Schneider Electric merged back in 2018?

Aveva released a RNS today detailing their proposed takeover of another company, ‘OSIsoft’. Part of the capital raise is by way of issuing an additional 125M new shares (to existing share holders) at a heavily discounted price (around 30%) to the recent share price. The ‘sell’ is you can buy 7 discounted new shares for every 9 you currently hold.

If you choose not to take up the offer, then your share holding will drop considerably in value (note the recent drops over the last 48hrs) once these new shares hit the market.

Rolls Royce did a very similar thing recently, although they weren’t looking to make acquisitions but to shore-up their bank.

My question is, how will Freetrade manage this? As an existing holder of Aveva will I get the option to buy at this discounted price? Also, if your holding isn’t divisible by 9 or is less than 9 shares, will the issue be pro-rata? I think the ratio works out to be 1: 0.77

First time I’ve been in this position with a holding so I’d appreciate any advice. Thanks

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I asked this question to the Freetrade Team, and I received a positive response today.

FT will be able to carry out the discounted share purchases on behalf of shareholders when they become available. Apparently, we’ll receive a notification detailing how to go ahead with the transaction nearer the time.

From the last RNS, I think the important dates are:

20th November 2020 - the record date (I presume this is the date at which current shareholders are recorded as eligible, much like an ex-div date does regarding the recording of dividends? But I’m happy to be corrected).

25th Nov - 9th Dec 2020 - Share dealing period during which you can apply to purchase the new shares.

So, I expect FT to notify us in around a weeks time and detail how to go about this.

Hope this has been of help to any other Aveva investors.

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The same thing happened with Aston Martin a while ago and it was very easy to do.
I just had to fill out a form with how many shares I wanted to buy and they gave me a date for when the money would be taken from my account. When the shares were issued they were just added to my current holding.

Appreciate sharing your experience with Aston Martin hopefully this will also be straightforward. :+1:

Any news on the rights issue please?

Saw a 20% drop in the price today and want to make sure I’m not diluted to pieces!

Cheers

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Morning all, I’m confused- if the rights record date is COB 20/11 (Friday), why did the price go down to the projected ex-rights (diluted) level today, and not on 23/11 (Monday)?
Struggle to understand why would people buy on the regular price on 23 and 24/11.
And equally, why there wasn’t there a flood of sellers on those two days to sell shares with no rights at the same price as shares with rights.

What am I missing?

Thanks in advance for your inputs.

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I’d also like to know more about this!

The team will send out the notification on the rights issue today. :+1:

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I received the notification today, so that’s good.
But I’m still puzzled as to why the price adjusted today and not on Monday. Unless the Rights Issue Record Date has been moved from 20/11 to 24/11, but can’t find such announcement.
This has nothing to do with Freetrade, more for my own understanding how these processes work.
Would be great if someone with more experience clarifies.