Online Broker factsheet issue - number of units held reduced for no reason

MarcoM

Hello I bought some stcok units in February but looking today the units held are only a few.
I have not sold any of these units. I know this stock has undergone consolidation a couple of times over the past two months.

I was wondering if this is something others have experience with their brokers, the number of units held changing with no reason given.
Is it only temporary as part of the consolidation?

I hope so.

Any advice would be appreciated.

Linton

What is the stock?

Grenage

I've had such notifications before the event on both fidelity and iweb.

[Deleted User]

Hi,

did they maybe have to sell units to pay for a monthly account fee?

dunstonh

How are you paying for your account charges?  i.e. do you hold sufficient cash in the cash account to avoid them having to sell units to pay the charges

wmb194

MarcoM said:

Hello I bought some stcok units in February but looking today the units held are only a few.
I have not sold any of these units. I know this stock has undergone consolidation a couple of times over the past two amonths.

I was wondering if this is something others have experience with their brokers, the number of units held changing with no reason given.
Is it only temporary as part of the consolidation?

I hope so.

Any advice would be appreciated.

Is it to do with the consolidations you mention? What's the name of the company/"stock"? It'll depend on the broker as to whether you'll receive any communication. In my experience how loquacious they are varies at lot. What matters is that you were aware that something was happening - it seems that you are - and the calculation is correct.

eskbanker

MarcoM said:

Hello I bought some stcok units in February but looking today the units held are only a few.
I have not sold any of these units. I know this stock has undergone consolidation a couple of times over the past two months.

I was wondering if this is something others have experience with their brokers, the number of units held changing with no reason given.
Is it only temporary as part of the consolidation?

Surely you're answering your own question?  Stock consolidation will typically result in the number of units changing (permanently), but if the number of units reduces, their value should increase by roughly an equivalent inverse percentage, all other things being equal, i.e. if the number of units halves their price should double.

As above, more information about what you hold, together with the size of your February and June holdings, would help answer a question like this....

MarcoM

Hi,

I now hold 59 shares at 129.25 per unit

Bought 2,850 at 105.26 unit cost in February 2022.

-98% as of today.
 The share is SAIPEM SPA.

I understand the consolidation but to end up at -98% as a result?

[Deleted User]

Hi,

what country's exchange are they listed on?

wmb194

MarcoM said:

Hi,

I now hold 59 shares at 129.25 per unit

Bought 2,850 at 105.26 unit cost in February 2022.

-98% as of today.
 The share is SAIPEM SPA.

I understand the consolidation but to end up at -98% as a result?

Yep, looks about right. It seems that Saipem is in a bit of a mess; from Reuters, "The new shares will be offered at an issue price of 1.013 euros each to ordinary and savings shareholders at a ratio of 95 new shares for every 1 ordinary or savings share held. ... "The capital hike is hyper-dilutive and the fact that investors could lose money in the remote event that the rights issue is not fully subscribed is causing worries," Bestinver analyst Marco Opipari said."

https://www.reuters.com/business/energy/saipems-planned-2-bln-euro-capital-hike-run-june-27-2022-06-22/

The small amount of good news should be that if you didn't take up your rights - which it sounds like - your rights will be sold into the market and there should be some money due to you. I'm not sure how much, though.

soulsaver

By Reuters  •   24/06/2022

MILAN -Italy’s Saipem said on Thursday it would have financial resources available for less than one year if its plans to raise capital did not go through.

The Italian energy services group on Wednesday launched a 2 billion-euro ($2.10 billion) rights issue, which will start on June 27, as it strives to bolster its finances and refocus its business after a surprise profit warning in January.

As part of the so-called Financing Package, Energy group Eni and Italy’s State lender CDP, which control Saipem, have committed to subscribing 44% of the capital hike while banks had pledged to subscribe any unexercised rights up to 1.12 billion euros.

“In the event that the Financing Package is not successful, the financial resources available to the group are expected to be exhausted by the first quarter of 2023,” Saipem said in a statement on Thursday.

The group added there were “significant uncertainties” regarding the successful outcome of the hyper-dilutive capital increase, which will only be completed if fully subscribed and is due to run until July 11.

Saipem said that in the event of a failing capital increase, there was a risk it would not be able to clinch the targets set in its 2022-2025 business plan or achieve them under the expected timelines, “considering also the uncertainties related to the evolution of the COVID-19 pandemic and the conflict between Russia and Ukraine.”

The new Saipem shares will be offered at an issue price of 1.013 euros each to ordinary and savings shareholders at a ratio of 95 new shares for every 1 ordinary or savings share held.

Milan-listed shares in Saipem closed down 8% on Thursday at 30.31 euros.