Rights issues

Helloooo Freetraders! Anyone had experience of how Freedtrade handles rights issues. TRIG have announced one (or some). Is it managed in the app ? Thanks

1 Like

It was really easy when Mitie went through this.

Freetrade sent a message in the app.

The offer came in and I just had to confirm by chat that I wanted to buy at the price I had rights to.

I just had to ensure I had free cash in the account for the purchase to be done by Freetrade.

1 Like

I have no idea what this means, could some one please explain?

5 Likes

That’s a great explanatory link.
" … market interest in the issuer’s common stock generally peaks…"
the case of TRIG, the share price dropped on the announcement down to the price of the rights issue. Not sure if I should exercise rights when there’s no discount. But maybe I should to avoid dilution? Bearing in mind TRIG’s strategy is to use rights issues to fund new projects. Decisions decisions

That answers my original question. Thanks Jase

If you have some TRIG in your ISA and you have already put the full 20K in for the year, can you exercise the rights issue in your GIA?

Couldn’t you tail swallow? Ok, you don’t take your full allocation of fully paids as you sell some nil paids…

Ah, I bet FT don’t credit the rights to your account do they? So you can’t trade them! But do they offer an election option to tail swallow?

You can transfer nil paids at other brokers from isa to GIA.,. But I reckon ft won’t!

Don’t know how it all works. I’ve never exercised a rights issue before.

Just reading the RNS

There’s no Rights Issue!

Not that I can see

There a share issuance/open offer…but not a rights issue. Similar but not the same. Also not entirely ‘mandatory’ for FT to process… it’s kinda ‘voluntary’ … so suspect FT won’t notify you and let it slide … unless you actively push to participate

2 Likes

Thanks finki. Seems like I need to have a closer look

This post was flagged by the community and is temporarily hidden.

I’m fuming about this

As of 9th March 2021, Freetrade cannot support elective Corporate Action events, including Rights Issues, at this time.

I’m not sure of the exact details but if we don’t get the option to buy shares when offered at a better rate then it is truly shocking and definitely something that would make me consider moving to anther provider. So far I am very happy with FT service and have invited others to join but when these options do rarely pop up I expect to 100% take them and surely it is my right as a shareholder.

It does seem customer service are not the greatest at dealing with things like this. Surely a very simple yes or no with link to policy is what EVERY decent company should do at minimum. If they say they don’t then they are not lying and if they do it is clear but this is something that is shocking to be even in doubt.

Again I’m not sure what the policy is but this is not the first time it seems in doubt and I can’t find the truth which is ridiculous. I have browsed the terms and conditions and can’t find anything but granted it was a browse :joy:

Come on FT you should be better than this!

5 Likes

…and chat support is shocking nowadays. I simply get told to email in and expect a response in 5-7 days!

TBF I did find the below link to this subject when going through various threads.

If and this is a big IF then it would seem really bad. Do you have any links etc to back up or confirm this is in fact policy? I’ve been a very vocal champion of FT since I joined even blagging my mum to join :joy: so would be really disappointed if true but I’m still hoping it’s just a miss-understanding.

Either way it should be VERY clear to all what the policy is either way.

1 Like

If that is meaning we can’t buy shares as mentioned above then that is a pretty shocking way of it being sent out!!! FT are very vocal in the community forums when something good happens and surely a decent forum works both ways good and bad for clarity.

Surely they don’t think a 2 sentence blog post most don’t know exist is acceptable? Again, I still believe maybe it is miss-interpreted as they can’t be this bad. :crossed_fingers: If true it should be on a warning before buying shares especially like SPACs as many users won’t know until it is a problem to them personally.

1 Like

Search ‘rights issue’ in FAQ