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Are Direct Line shares worth buying ?
Comments
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The Times says, 'Individual investors have staged a last-minute rush to buy shares in Direct Line in a fresh boost to the insurer’s hopes of a successful flotation'.
The actual close is end of the day, though most retail brokers seem to be doing the same as Barclays and closing at noon.0 -
Royal Bank of Scotland (RBS.L) plans to price the stock market listing of its Direct Line insurance business at between 170 pence and 177.5p, in the lower half of its initial range, sources close to the transaction told Reuters.
The British bank, which is 82 percent owned by the government following a 2008 bailout, had initially set a price range of between 160p and 195p, but this has been narrowed ahead of the offer closing on Wednesday.
Reuters
The FT report that "People familiar with the matter said the transaction would be oversubscribed at this level."
There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
ADVISERS to Direct Line were last night set to price the insurance group’s shares at 175p, valuing the firm at around £2.62bn. The biggest London float of the year is now certain to get off the ground with trading ready to begin this morning.
City A.M.
Direct Line is due to disclose the price at 7.00 this morning.
The FT are reporting that around 25,000 individual investors applied to take part and are set to account for 15% of the shares offered.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
BBC confirming "RBS says it will sell insurer Direct Line on stock exchange for £2.625bn or 175 pence per share."There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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I was scaled down by about 1/3rd. Any more and it would have left me fewer shares to play with, any less and I'd have wondered about demand in the aftermarket.0
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Currently trading up around 7% @ 187p in conditional trading.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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yes up to 187.5 up 7% on issue price of 175, liable to rise further with full listing I'm hoping...If it takes a man a week to walk to walk a fortnight how long does it take a fly with tackity boots on to walk through a barrel of treacle?0
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I was scaled down by about 1/3rd. Any more and it would have left me fewer shares to play with, any less and I'd have wondered about demand in the aftermarket.
I was scaled down by about 26% (with TD Direct). This was on £4k worth of application, I got around £1,050 back.
Whether being denied the last 600 shares was a lucky escape or a disappointment, will only be revealed in the fullness of time!
I do plan on selling some/most of them quite quickly as ~£3k is more than I want in this stock. Hopefully at a small profit but even if the price is down I'll be selling and taking the loss - most of this investment was not a long term buy but a straight gamble on the IPO price versus the open market potential in the next couple of months.0 -
The final formula was as follows:-bowlhead99 wrote: »I was scaled down by about 26%
Each application will receive the first £999.25 (571 shares) of their demand in full. Any demand above that will be scaled back to 65% of that subscription, with the allocation rounded down to a whole number of shares and subject to a maximum allocation of £99,998.50 (57,142 shares).
Worked Examples
If you applied for £7,000 you will receive £999.25 + (£7,000 - £999.25) *65% = £4,899.74 = 2,799.85 shares = 2,799 shares rounded down to the nearest whole share.
If you applied for £100,000 you will receive £999.25 + (£100,000 - £999.25) *65% = £65,349.70 = 37,342.71 shares = 37,342 shares rounded down to the nearest whole share.
If you applied for £250,000 you will receive £999.25 + (£250,000 - £999.25) *65% = £162,849.74 which is then capped at £99,998.50 = 57,142 shares.0 -
The price range today with unconditional trading is 187.62p - 189.50p.
I could take some profit of around 7.5%, but intend to wait it out for a bit yet to see how things develop.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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