Northern Linked Offer

[UncleEbenezer]

My offer document finally arrived in the post today, the postman missed it on his first delivery but came back a few minutes later!

I was intrigued to read that NVM will be opening its offices to receive applications from 7.00 am on the 7th.
How did they expect someone to deliver an application during the first hour when the forms weren't even available?
Interesting to see that they are keeping their offices open for deliveries 11 hours a day this week (from Tuesday).
Are they expecting masses of locals making hand-deliveries?

Well, I may be further from Newcastle than any other UK Fool. But nevertheless, the way you put that brings a smile to my face, at the prospect of someone other than Londoners getting first dibs at something.

[Retiringat51]

Howay man, wees is al propa millionaires in this toon ya na.

The bairns were hacky off plodging through the clarts to get at the front of the geet walla queue ootside Northern's offices this marnin.

How man, had ya pash, divvin' be a workyticket!

[SpinDoctor]

Royal Mail delivered at 8.09am this morning. Tracking shows Wendy Arkle's signature (NVM Partner secretary) as proof. I wonder how many she had to sign for...
I can't complain about that service. Recommended.

[bnmlp]

All the offers now closed according to 0700h announcements.

[UncleEbenezer]

Yay! My thud on the doormat has just arrived. Now I can fill in the forms, dig up the chequebook, wander off to the local post box with (if I pick a main one) two collections a day on weekdays, so it gets into the post today!

Nice to know these opportunities reach as far as here.

[scotia]

Yay! My thud on the doormat has just arrived.

I'm still waiting in Scotland.

[scotia]

My copy and my wife's copy of the offer documents arrived today (9/2/2017) at 1:35pm
Maybe adequate if backwards time travel had been invented

[UncleEbenezer]

My copy and my wife's copy of the offer documents arrived today (9/2/2017) at 1:35pm
Maybe adequate if backwards time travel had been invented

Hehe.

Our posties like to come here early. I guess it's to do with all the houses in my road being up more than 40 steps, so they want to come while they have the energy to cross the walls from house to house rather than come up&down everyone's steps individually. So mine came earlier than yours

The steps are also useful in deterring nuisance visitors like salesmen, political canvassers, or god-botherers. Sadly that doesn't stop junkmail arriving in the post.

Anyway, it's all academic this year. Can't save tax I haven't paid in the first place, so no VCT subscription offers.

[thebarns]

I too live In Scotland, one of the sensible parts I hasten to add.... wish I could uplift it and dump it all in Northumbria.

As I left for work this morning, the mail delivered offer had still not reached my house, it might be there when I get back, but I read that the offer is closed !

I remember predicting a while back the Offer would be closed by Friday, I was 1 day out !

Who knows if my downloaded application worked or not, I sent it away on the day but one never knows.

And should they have preferred direct application shareholders, without commission going to IFAs/finance brokers or was there a cosy arrangement with them ?

And what about the order the opened the post today or last thing yesterday ?

A lottery - I'd have thought a £10k-£20K (or whatever)(or in proportion to existing shareholding) opportunity to all existing shareholders within 2 weeks may have been one way to go, then throw it open to all.

I'm sure some will have received priority treatment !

[Kidman]

And what about the order the opened the post today or last thing yesterday ?

Before any post arrived on the 9th, the offers were declared closed. One day's postal deliveries only (and two days hand-deliveries). The order they select them out of the bag(s) has got to be a lottery.

A lottery - I'd have thought a £10k-£20K (or whatever)(or in proportion to existing shareholding) opportunity to all existing shareholders within 2 weeks may have been one way to go, then throw it open to all.

After several years, I still believe that the popular VCTs should use a rights issue so we get a guaranteed pro rata allocation and if we don't want it we can sell the rights for cash. That is why I always vote against disapplication of pre-emption rights at VCT AGMs.

[Karellan]

I do wonder about the costs involved in sending out paper forms through the post and other associated costs when the issue sells out "before it has begun".

[Retiringat51]

I do wonder about the costs involved in sending out paper forms through the post and other associated costs when the issue sells out "before it has begun".

Good point. The costs of running Offers are high irrespective of how much money they are seeking to raise, which was meagre in this instance - as per previous Living Bridge debacles.

[Kidman]

The costs of running Offers are high

and who pays those costs? We do, the shareholders pay by a reduction in NAV.
But the managers can then start claiming their fees on the money raised.

Here's a suggestion for VCT boards:-
when you next do a top-up offer, make the managers rebate fees on the new money raised until those rebates have equalled the costs of the fund-raise.

[moorfield]

Note the Royal Mail 'guaranteed next day by 9am' service. 19 pounds (!) well spent today.

Money well spent - congratulations to all who got there. Sadly I suspect my letter with the 2nd class stamp (all I could find in the drawer at short notice) on it will be the lanterne rouge.

It struck me that an offer of this size wouldn't need too many high net worth individuals writing cheques of £100-200k to fill it up quickly - I wonder how many of those they actually do see.

[thebarns]

I confirm that the posted offer was indeed lying in my house upon my return yesterday, so their postal offer documentation arrived after the offer closed !

What a ridiculous farce of a system !

My downloaded application was stuck in a postbox at 9am on Tuesday morning - I have no idea whether or not it got there on time.

I e mailed them to see if I was successful or not - no reply !

They may be, up till now and I guess hopefully in the future as I am a shareholder in all three, successful fund managers, but they are sadly lacking when it comes to properly thinking through their top up share offers - I suspect they don't give two hoots and that's what they really think of their shareholders.

Rest assured that those in the know will have got their monies in and accepted.

Nowt we the honourable "small" investors can do !

[outpost83]

I was keen to top up my Northern as they have done pretty well, but in the end decided against because of all the difficulties outlined above and took a punt on Elderstreet instead. At least I could be sure of getting in on that one.

[scotia]

British Smaller Cos have just announced a new top up offer. They intend to operate the process in an entirely different manner from Northern (and Baronsmead). There will be a ballot on a fully subscribed offer. I have posted a description on the British Smaller board. Although this seems fairer to me, I think that it should occur much earlier in the financial year to allow unsuccessful applicants to try elsewhere.

[oxmatt]

Received my cheque back from NVM for Northern 3 this morning but nothing for the applications for 1 and 2 as yet. So fingers crossed.

[Karellan]

and took a punt on Elderstreet instead. At least I could be sure of getting in on that one.

It is said that the best time to buy an asset is when nobody wants it. Looking at the Northern spectacle possibly that applies. After all their success was fairly dependant on MBOs and its a new game going forward for them as well as others. I bought a bit of Elderstreet too. It would be nice if they were a bit bigger but then good investment often takes you out of your comfort zone. Must be that Northern is pretty comfortable.

[UncleEbenezer]

It is said that the best time to buy an asset is when nobody wants it..

Speaks a man who never invested in something that was heading for bust ...

The falling knife is a classic high-risk punt. Some time I should figure out the balance of my profits and losses on them. I seem to recollect doing well on them in 2008/9. Beginner's luck, or a much clearer-than-normal view of markets from outside?