Albion offers are out today

[barchid]

Albion have formally announced their offers for all 6 vct's today, not yet loaded up on Wealth Club but I do recall last year that some of the Albion group's early bird offers only lasted a few days so probably worth applying for this week.

[Seasider]

It is up on Wealthclub now.

I think the early bird is for the first £10million.

[zxc100]

I got my Albion allocation letter today but am having trouble agreeing the costs. By way of example

.............................NAV.............Offer costs........Offer price.....Issue price
Alb Development--------91.32------------1.5% 1.48----------92.80------------92.80
Alb Enterprise----------127----------------1.5% 2.00---------129--------------129.00

Now my calculation as per page 8 of the securities note is 91.32/.985 = 92.71 and 127/.985= 128.93 This may seem small but across the several issues it adds up.
Am I missing something?

zxc

[oxmatt]

I see similar for AAVT NAV 52.9 Costs 1.5% 0.9 Issue Price 53.8 whereas 52.9/0.985=53.7. If I give them the benefit of the doubt it could be accidental advantageous rounding but agree it looks more fishy if the same is happening on every issue.

[sinterklaas]

Funny how they are always crap at allotments

Youd think with 6 VCTs and an offer every year they would have had enough practice…

[oxmatt]

Apparently it is due to rounding the issue price up to the nearest 0.1p which is mentioned in the pricing formula on page 11 but is not referred to on page 12 under the terms of the early bird discount.

This 0.1p clearly adds up (especially when some of the issues prices are way under 100p due to low NAV per share such as Kings Arm's Yard) but there is some comfort in that apparently the difference is paid into the companies rather than taken as part of the offer costs.

[zxc100]

Thanks Oxmatt, that is helpful to understand what is going on. I am rather disappointed that Albion has not come back to me at all despite 2 calls.

zxc