Haleon - HLN - Stock Discussion

Haleon was established on 18 July 2022 as a corporate spin-off from GSK. It is the largest consumer healthcare business in the world owning brands like Sensodyne, Panadol, Advil & Centrum.

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Couldn’t find haleon on the search. Huge offshoot from GSK worth billions and with a decent growth forecast.

Those of us who had GSK have received Haleon shares in our portfolios with active buy and sell buttons so I don’t think it should be that long before they are added to the search, given that so many FreeTraders will have the stock already.

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My new shares seem to be reported incorrectly.

There is clearly something wrong with the investment gain/value due to the price of 16.97 being used instead of £3.14 (the current price). Is this going to be corrected with the GSK share price update?

Also the summary info states these shares are only available on PLUS. Is this correct given they came into my GIA so I won’t be allowed to buy more.

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It’s on there now…

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Bought some yesterday. Was never into GSK but was into the idea of Haleon.

It shows the benefits to shareholders when you break a conglomerate into its more natural parts.

GE is going this now and these won’t be the last

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I have had the same problem with losing 78% on the Haleon shares that were spun off from GSK (I had a lot of GSK shares). Has anyone heard from Freetrade to see if they will sort it out?

Hi @JRW losing 87% you mean the assigned ‘purchase value’ is 87% higher than the trading value?

You’ve not lost anything it’s just a data glitch. Have you reached out to FT via the App?

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So is buying on demerger day the same as buying on IPO day.

Does the advice still hold true for demergers?

The advice I speak of “it’s better to buy an IPO’d company on any date after the IPO possibly a few weeks of months later”

Does this advice hold true for Demergers in general?

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As a holder of GSK I obviously received the same number of Haleon shares. My question is, following this and the subsequent GSK consolidation, what has a GSK share and a Haleon share actually cost me?

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That’s a great question and not one that’s easy to answer. With an IPO a company creates a lot of stock that it sells pre-IPO to investment banks and pension companies. The day one price is often not what these companies paid and some will simply flip the stock for a quick profit as retail investors rush in, this leads to the volatility commonly seen. It’s also hard to assess the new company and the effectiveness of the management to deliver on their goals when there is no track record to judge against.

A demerge is different in so far as Haleon shareholders are the same as the day before just they just have 1 GSK & 1 HLN.

There is a lock-up on Pfizer & GSK selling their holdings in November and given they turned down £50bn (£40bn when you factor in the debt that HLN has taken with them that would have stayed with GSK) from Unilever you’d expect them to hold until closer to that price.

The price of an HLN share should be £3.30 from everything I’ve read. Freetrade support might be able to confirm this as they see all the inner workings.

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Many thanks NeilB. I’ve seen the £3.30 price as well but couldn’t find anything official to substantiate it. I’m obviously trying to ascertain the net effect on my original investment because clearly my GSK profits took a bit of a hit but then I’ve suddenly gained a whole raft of shares that I’ve ‘sort of’ bought with some of those profits. I’m now keen to monitor both holdings but was unsure how to calculate a ‘cost’ price for Haleon. I guess I’ll just need to work on £3.30 and show a red dip for now. Thanks again.

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@NeilB In my mind the only parallel is that they are newly listed on the relevant exchange. I wouldn’t call the OP’s advice statement as really advice - it is an opinion on the level of gossip. In the end there are IPOs and there are IPOs. LoL. Some explode and others don’t. The difficulty for small time retail investors in a popular IPO is to actually get hold of something close to the launch price.

The key thing that you say that is

This is very true especially because the purpose of the IPO is to create funds for a particular strategy which has promise but hasn’t necessarily been proven (e.g. money for marketing/scaling). A demerger typically has a different purpose (focus and/or balance sheet restructuring etc etc).

Note that the Haleon share price fell on day one by 6.6%. This might be perceived as great for someone who has long term confidence in the company and terrible for someone looking for evidence that the market values the company.

A piece worth reading for (potential) Haleon investors is

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Surely the purchase price of these and the GSK shares needs correcting so our investment gain/loss is accurate.

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Absolutely 100%. It’s showing me as having a share price average of £15.97 on Haleon and thus having lost 81% or £1,200 which it utterly ridiculous. I’ve emailed FreeTrade support to ask them to look at my averages for both GSK and Haleon. If they stick with the GSK average of over £20 post consolidation, then they should set my Haleon to £0.00. If they set the Haleon average to the roughly £3.16 it was upon demerger, then my GSK one should be adjusted downwards as well.

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Glad to see it is not just me that’s annoyed to no end with this

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Please keep us updated on any response :+1:

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Will do thanks.

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