Baillie Gifford Shin Nippon (BGS)

Sally57

I have just received a notification from iWeb that BGS will be issuing 5 new ordinary shares for each existing ordinary share that is held by close of business on the 18 May.

The board is proposing this because they feel the current share price is too high and it is putting off new investors. Is this a good thing for the board to recommend?

System

In theory, it will have no real effect!

Reaper

Yes share splits are because they fear a large share price looks too expensive and might put people off. If the share prices gets too low they might do the opposite to avoid looking like Penny Shares.

I'd be surprised if it makes much difference.

ArchBair

I am tempted to sell my holding in BGS and switch to the OEIC fund Ballie Gifford Japanese Smaller Companies. I think the OEIC fund will less volatile in any downturn and I just can't see how BGS can sustain this level of growth.

redux

I think a share price premium to net asset value would be more likely to put people off, but I understand they may have been trying to counter this, or take advantage, by issuing new shares.

As above, dividing like this shouldn't have any effect. Someone saving monthly in their savings scheme might buy an extra share and have a couple of quid less uninvested cash some months, but that really is pretty trivial.

adiohead

I'm a bit confused (and worried). I have shares in this and last week I was in profit and today I log in and it's showing a huge huge loss despite the fact there hasn't been much change.

Is it possible my shares ISA haven't taken the split into account?

Morphoton

On Fri you would have had X Ord 10p shares in BGS at about 975p each.
Today you will have 5*X Ord 2p shares in BGS at about 195p. So the value of your holding will be unchanged.
You can check the description of your holding - 10p Ord (old shares) / 2p Ord (new shares) to see if your ISA has updated your holding. There is nothing to worry about.

adiohead

Yeah, it seems to have zeroed out now and all my shares are negative.

Looks scary but I think they're just updating/correcting the price.

I'm new to all this so nearly had a heart attack this morning. :rotfl:

Asghar

When I logged on this morning, my holding with Hargreaves Lansdown was showing the correct amount after the split.

adiohead

I'm using AJ Bell. I think they must be a bit slower in sorting out things.

bowlhead99

adiohead wrote: »

I'm using AJ Bell. I think they must be a bit slower in sorting out things.

I'm using them too, they're showing the right price and nominal value £0.02 per share as of now.