Mitie Rights Issue

pelakastim

Looking for help and assurance after I dropped the ball on this one.
I already held a few £100 in Mitie before the rights issue. When it was then released on 17 July, I ploughed around £1.5k in to the new 25p rights issue units. All done I assumed, but like a b*llend, I missed the corporate action to allocate or not do anything tick box. My SIPP provider (AJ Bell) has now said it is an arbitrary decision of the registrars as to what happens to my £1.5k cash and there's a chance I'll lose the lot. I've already had the initial holding diluted - but no-one seems to have any idea what will happen to my cash! It's a lesson learned about checking on the corporate actions, but it seems harsh that there appears to be a chance that I've lost the cash I put in to buy the allocation. Having missed out on the rights issue I can put down to experience, but for the cash to vaporise just doesn't seem right - although AJ Bell say there is a very real possibility that is just what will happen.

dont_look_now

To clarify: are you saying that you bought some of the nil-paid rights (for £1.5k cash), but have let them lapse, because you missed the deadline to exercise them (for 25p per right)?

(If you already held some Mitie shares, you would also have some nil-paid rights "for free". Specifically: 11 rights per 5 existing shares. These will lapse in the same way, if not exercised.)

You will probably get some money back for your lapsed rights, though you are not guaranteed anything. The company (or its broker) will attempt to place the new shares you didn't buy for 25p with institutional investors. If they can sell them for more than 25p, then they will pass on the excess (above 25p) to you, possibly after deducing some costs. So if they can sell the shares for something like the current share price, which is about 37p, you might get about 12p per lapsed right.

EdGasketTheSecond

How can you 'plough in' the money to the rights without it buying anything? Your post is not making sense. You are allocated nil paid rights for free and it is up to you if you want to sell them in the market or buy the shares to which you have a 'right'. If you paid the money for the shares, you will either get the shares or, if you didn't tick a box or something, your £1.5K will just be in your account waiting to be invested.