I’m a bit confused here. My understanding was that if you had 100 shares you will now have 76. I get that. The value of your investment remains the same although now at a higher price per share. As an example closing Friday the price was about 435.42 pence per share, so your 100 shares was worth £435.42. My understanding is that after this consolidation you are now down to 76 shares but with a higher share price (guessing at 572.92 pence) so they should still be worth about £435.42.
How come the value dropped by about 30% meaning these 76 shares are now only worth £299-ish Pound?
Or have I got this totally wrong?
At least this is what is shown in my Freetrade app.
You will lose approx £1 per the original number of shares you owned as that is what the b share gets its value from putting you back approximately where you were as the company is now worth 4 billion odd less after the capital return.
Iv managed to get my holding slightly better larger than it was using the money I should get back from the b shares. Still got the dividend coming soon as well to invest if the price drops more. My freetrade is showing massive loss but that will level out…I hope ha
Mines right for the amount of shares I had before the b shares were issued. Which I think is correct.
Only issue I have is that my average is showing at £4.88 still when it should be around £3.89 I think
Mine was correct, and i re invested the money back into aviva, i ended up with 10 more share than i had before the b Share scheme. Only thing is to wait till stock value to go up then ill be even more happier.
Same for me, it’s showing an over 20% loss which I know it isn’t. However, today I received a Capital Distribution (not dividend) which is basically identical to what the loss is showing as. I think FreeTrade might not have updated the loss number, which I hope they do as it is inaccurate and makes the investment look much worse than it actually is.
Looks like Google Finance does not like Aviva (AV.) no more as the ticker dropped off. This screwed up my tracking spreadsheet on Google Sheets with error message “When evaluating GOOGLEFINANCE, the query for the symbol: ‘AV’ returned no data.”
Now they only list AV.A and AV.B.
Other than that I received the correct amounts for both the dividend and the capital distribution
Does anyone know when the app will reset itself to show the true average price? Since the b shares were issued it seems to of confused the average and I’m showing at large loss when really it’s a large gain based on share price.
Aviva Plc – which earlier this year announced its intention to return £3.75 billion to holders of its ordinary shares and holders of American depositary shares representing ordinary shares (ADSs) – has issued an update on the initiative.
“Assuming there is no unexpected change in the position of the company or market conditions generally, the company intends that the B shares will be redeemed [on May 17] for 101.69 pence per B share, we had 1 B share per 1 share we had.
The B shares were issued and immediately sold with the funds sent to you. Doing it this way must have tax benefits but given I’m an ISA / SIPP investor it’s not for me.
Ah ok, thanks Neil, I hadn’t realised that. Do B shares in a company have any advantages at all? If they attract higher dividends then it’s a shame in a way as I would have liked to have held them in my ISA.
Many companies, Freetrade included, have different classes of shares for various reasons but I don’t believe anyone who got these B shares has them as they weee intentionally sold (back to Aviva) with the cash returned to the holders. It’ll explain the uptick in share price as many have simply reinvested the money.
