I think the âintegrationâ in this sense is essentially an in-specie transfer electronically.
Is that overly complex? No, not really. It should (and probably will) exist at FT if it doesnât already.
As for losing clients. Yeah, may be. But my guess would be very few. Once you get passed the initial âlook, look at me, Iâll sell you something for a discount, honest, Guvâ moment youâre not actually left with much here.
I donât think the trade off is worth it. Youâre left transferring in a load of shares that donât always sit well within your universe (yes, Ocado, Ted Baker et al are clearly already thereâŠbut the tiny AIM mining stocks Iâm referring to) and paying behind the scenes operational costs to administer them.
The way I look at it for Taylor wimpey, I canât see institutional investors paying a premium (more than current share price) but if theyâre raising 500million that is a dilution (but arguably net positive because of new cadh on the business) so Iâve added some to see how primary bid works. Just a shame freetrade arenât listed
Impossible to say
Discount in isolation is irreverent somewhat.
Discount and size of offer benchmarked against current market cap gives you an indication of post offer dilution.
In a lot of cases this initial discount is eaten away by dilution and/or sentiment about the reasons for the raise.
Like Iâve said many times before itâs just a case of maths. Then add your personal view of the company and its plans for the monies. If you still like it, buy it. But youâll have instances where you donât know the placing price, youâll pay a fee to an intermediary and youâll have settlement lag on the outturn so wonât be able to trade it on the opening bell. Add all that together = well, thatâs up to you.
Yep, looks like AML has already issued the new stock.
The eye catching âlook you can buy at an 8.1% discountâ has diluted the share price down to about 51.5p versus the 50p offer.
Youâd have to make a sizeable purchase to offset costs and make a profit. Fair play if thatâs for you. AML is pretty volatile so having a punt is understandable. Just buy them in the market though rather than anywhere else.
