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

masonic

Issuing just under 2 billion new shares at a price of a little over 1 EUR each is going to have an impact on the 21 million ordinary shares. No wonder the share price was falling all last week. Anyone with any sense would have got out while they could at 20-30 EUR. New shares not taken up will be auctioned off at the end of the period, meaning nobody is going to want to pay 20x more for the shares today vs new shares in a couple of weeks.

Ordinary shares are currently trading for 1.80 EUR, which is almost double the new share issue price, and there's about a 100-fold dilution of the ordinary shares. Hence -98%. Question is, would you wish to double down on this company and take up the rights issue for another 5,605 shares for a Euro each?

MarcoM

wmb194 said:

Linton said:

wmb194 said:

Linton said:

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?

With a bit of research..

May 23rd 100-> 21 consolidation
Jun 13th 10->1 consolidation

so an approx 50X consolidation.

Looking at the share price on the net it hasnt been a great  investment but there is no sign of a 98% drop.  The share price (I believe assuming post consolidation units) is 2.61 Euro on the 22nd Feb and 1.52 Euro now, up from 1.25 at close of business on Friday.

So the number of shares you hold is right.  Your share price nowish is right. What looks wrong is the 105.26 cost in Feb 22.  It does not seem to correspond to the prices given on the net.  The price per old unit using the data on the net should have been 2.61X21/1000= 0.0548 euro.  How much in Euro did you actually pay for your shares? 

There's been another i.e. a third consolidation today.

Are you sure? Google only find's the two I listed.  I dont think a split/consolidation would show on the graphs as they normally show the prices in terms of the latest shares.  I suspect those steps are genuine share price falls.

I think today's 'split' indicator relates to the rights issue period that's begun today. To be fair to the OP's broker it still has time to make contact and ask for instructions before the 11/07/22 deadline.

https://www.saipem.com/sites/default/files/2022-06/PR%20Saipem_22.06_2022.pdf

Looking into their clauses it looks like my broker does not have to deliver news in time for overseas stock.
As mentioned previously they did not alert me to the previous consolidations so I' don't think they will tell me about 11th July either. Having said this I may as well hold onto this stock for the long term hoping it picks up again.