I notice there is a small payment in my account from "UKW provisional excess shares".
I suppose it's something to do with the recent open offer, but I don't know why it's provisional, neither do I know how I should account for it. Is it a special? is it an adjustment?
No doubt others have had this too.
It is very small, so perhaps as regards unit price or dividends, it can just be ignored?
Arb.
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UKW payment
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Re: UKW payment
No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.
(Chat about UKW on ADVFN )
https://uk.advfn.com/stock-market/londo ... share-chat
( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).
(Chat about UKW on ADVFN )
https://uk.advfn.com/stock-market/londo ... share-chat
( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).
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Re: UKW payment
monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.
(Chat about UKW on ADVFN )
https://uk.advfn.com/stock-market/londo ... share-chat
( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).
Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.
So definitely not a special!
MDW1954
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Re: UKW payment
MDW1954 wrote:monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.
(Chat about UKW on ADVFN )
https://uk.advfn.com/stock-market/londo ... share-chat
( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).
Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.
So definitely not a special!
MDW1954
It looks like that is the explanation, but it's a confusing way of logging it, though I can see why. Common sense would say: "just charge me for the shares I bought". In practice I think they had to pay for the shares upfront, and then refund the 15% scale back. The only thing is, they might have given a more transparanet label than "provisional excess shares" .
OK. It's clear now - it's just a refund of cash not required.
Thanks, both, for your help.
Arb.
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Re: UKW payment
Arborbridge wrote:MDW1954 wrote:monabri wrote:No holding in ukw but I'm wondering if....you applied for shares but only get 85% of what you applied for.
(Chat about UKW on ADVFN )
https://uk.advfn.com/stock-market/londo ... share-chat
( I'm just throwing out a suggestion as to what the small sum might be...treat with a grain of salt as an answer!).
Depends on how your broker handles it. It's simply a return of your own capital, taken (but not fully used) to fund a prospective purchase of UKW shares.
So definitely not a special!
It looks like that is the explanation, but it's a confusing way of logging it, though I can see why. Common sense would say: "just charge me for the shares I bought". In practice I think they had to pay for the shares upfront, and then refund the 15% scale back. The only thing is, they might have given a more transparanet label than "provisional excess shares" .
OK. It's clear now - it's just a refund of cash not required.
Just to add that it's the normal way companies process applications for newly-issued shares in cases where applications might get scaled back: the company insists on applications being accompanied by cash to pay for the full number of shares applied for, then it delivers the shares the application was successful in getting plus the cash that would have paid for the shares it didn't succeed in getting. It's basically the only way the company can ensure that everything goes smoothly, no matter how much or how little applications end up being scaled back.
And so brokers find themselves having to pay out the full amount for the application to the company, and then later pay back the 'change' when the company sends it back. The only way they could provide their clients with a 'just charge me for the shares I bought' option is by borrowing the money between the time the client applies and the time it becomes clear how many shares the application has successfully obtained, and that would expose them to all sorts of legal and financial risks. I'd imagine some brokers might offer accounts with that sort of short-term borrowing facility built in - but I'd also imagine that they're not cheap online brokers, and also that the accounts they offer don't include ISAs and SIPPs for regulatory reasons.
Gengulphus
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Re: UKW payment
The fact that the share issue is over-subscribed is a good sign of confidence in the company.
I hold UKW, but did not subscribe this time (but did last time), but I am pleased to see it was over-subscribed.
FD
I hold UKW, but did not subscribe this time (but did last time), but I am pleased to see it was over-subscribed.
FD
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