[On :freetrade:] Taylor Wimpey (TW) 🏠 🔨

https://www.cityam.com/uk-housing-market-stable-despite-political-uncertainty-says-taylor-wimpey/

Good news of sorts?

(Wall’s nearly straight…:laughing:)

Fool smells a buying opportunity.

TW was one of the first stocks I started to purchase at £1.70 and I’ve been adding more each month and I’ve added some more today :grin:

Its a long term hold for me especially with more confidence in the housing market post election + Brexit

My average price is £1.83. I’d be tempted to pick up more south of the £2 range for the dividend alone.

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A very nice Special Dividend for the last few years.

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Looks like with the announcement by the PM on Sunday, they are looking to be mostly back to work.

I’m surprised just how well they have handled the lockdown, making more sales Y/Y than before (no where near target but still more than 2019), taking on a lot of debt but by and large not using it, and cutting their dividend.

I’m expecting a slow financial recovery (compared to targets) but a more rapid share price recovery.

Not even a pandemic scares the British (and Spanish) when it comes to buying property! While a slowdown the market didn’t stall.

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Some good news this morning for both TW and my portfolio! https://www.sharecast.com/amp/news/news-and-announcements/taylor-wimpey-reports-strong-orders-after-sites-reopen--7531910.html

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They have just announced an equity raise through PrimaryBid.com.
https://www.taylorwimpey.co.uk/corporate/investors/2020-equity-raise

I’m struggling to work out what the price will be though. “The Offer Price will be determined by the Company at the close of the book building process.”

They won’t release the price until the offer is closed. There will be a modest discount i expect (a few %) on the closing price today, but obviously that comes with £500m more share dilution…

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As an existing shareholder I’m really disappointed by this. The announcement may as well read “we literally don’t care about pre-emption rights”.

I’m struggling with this now. I enjoy the innovation of a quicker route to equity raising, including more retail investors & general democratisation of company equity. But to not approach existing shareholders first is quite disappointing - I suspect some institutional investors will be very angry.

On a brighter note, the use of the capital is truly fantastic and I’m happy the company have used this time well to seek opportunities.

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In the documents on the TW website, it does say, “The Company currently expects that preference will be given to the Company’s employees and existing investors who provide self-certification of this.”. What the translates into in reality remains to be seen. The bulk of the money appears to be coming from the placing.

  • The Company expects that the combined total proceeds from the Placing, the Subscription
    and the Retail Offer will be approximately £500 million.
  • In conjunction with the Placing, all of the Directors of the Company intend to subscribe for new ordinary shares of 1 pence each in the capital of the Company (the “Subscription Shares”) at the Placing Price (the “Subscription”) to contribute, in aggregate, approximately £470,000.
  • It is a term of the Retail Offer that the total value of Retail Shares available for subscription at the Placing Price does not exceed €8 million or equivalent.

A couple of other potentially important points

  • There is a minimum subscription of £50 per investor under the terms of the Retail Offer.
  • No commission will be charged to investors on applications to participate in the Retail Offer made through PrimaryBid. It is important to note that once an application for the Retail Shares has been made and accepted via PrimaryBid, that application is irrevocable and cannot be withdrawn

This last point is interesting, one would have to subscribe without knowing the price. :thinking:

I’ve emailed to see if they can offer Freetrade as a broker. It’s not on the list sadly.

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I think it was mentioned on a different thread that a tie up between PrimaryBid & Freetrade was on the cards, but not likely to happen short term.

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The shares from the offer placed at 145p which has already been priced into the market. Not much of a discount!

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The “price will be determined at the end of the day” deals never are, usually 1-3 pence off from the few I have seen, only worthwhile at large amounts. The occasional 8-20% fixed discount comes through, but they tend to be on companies that arent worthwhile.

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“Barratt, Persimmon Homes and Taylor Wimpey may have misled buyers | Watford Observer”

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