another rbs rights issue? - would you risk it??

anna42hmr

looking at yahoo finance, the shares today closed at 84.50 p

fatpig_2

Their last rights issue tanked. Are they gonna keep going until one succeeds

sabretoothtigger

This is an open offer not a rights issue ? Sounds more like an ipo


http://www.investors.rbs.com/investor_relations/announcements/ReleaseDetail.cfm?ReleaseID=339926

http://www.finance-glossary.com/terms/open-offer.htm?id=12449&ginPtrCode=00000&PopupMode=false

anna42hmr

theyve dropped a bit today, closed at 79.30

taek

I bought 7000 RBS shares recently at 60p and I am confused as how to react to RBS' rights issue coming up this week. I am rather new to the stock market and would need some help on understanding the benefits and traps of this particular rights issue. I have a short-term strategy and wouldn't like to wait more than 9mths for some capital gains from this troubled share.
thank you

anna42hmr

the full detail is apparently being released today, so that should give more info

anna42hmr

the details have been released today

as advised before it is 65.5p per share,

payment in full is needed by 25th november, (so not much time being given) and people will be offered to buy 18 new shares for every 13 shares they already own

there is a 26 page document on www.rbs.com if people want to read the full details

sabretoothtigger

I thought people would be allowed to buy as much as they want tbh and then like an ipo trim their numbers back if needed

anna42hmr

sabretoothtigger wrote: »

I thought people would be allowed to buy as much as they want tbh and then like an ipo trim their numbers back if needed

i think they wanted to sell a set number of shares, looking at the papers i think people can apply for more if there is a surplus of shares that are not taken up

sabretoothtigger

Discussion and interview with rbs here:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/