Rangers issue news about share issue to current shareholders

mdingwall

mdingwall

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Things moving at last then. Interesting times. I assume this has gone out/is going out to independent shareholders, not entirely clear from that message. I’ve had nothing as yet.
 
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Cyberniv said:
May I say, excellent timing, right after the timmysphere having a collective arse collapse last night.

This should add nicely to the sight of us in their rear view mirror.
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That wee speck is certainly getting there.......
 
I don't understand share issues.

I always thought the shares in a company added up to the value of the company in effect.

so if theres 7 million shares in total and they are going for a tenner each then that because the company/club is worth 70 million.

i know thats over simplified but thats correct isnt it?

so then what is a share issue? the company just prints another 7 million shares and sells them? doesnt that mean the value of existing shares will likely be halved overnight?
 
TheBearNecessities said:
I don't understand share issues.

I always thought the shares in a company added up to the value of the company in effect.

so if theres 7 million shares in total and they are going for a tenner each then that because the company/club is worth 70 million.

i know thats over simplified but thats correct isnt it?

so then what is a share issue? the company just prints another 7 million shares and sells them? doesnt that mean the value of existing shares will likely be halved overnight?
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I think so!

As I understand if shareholders don’t want their holding diluted then then need to invest more!

And if they only sell to a select few then certain parties will have no choice but to have their shareholding diluted!
 
TheBearNecessities said:
I don't understand share issues.

I always thought the shares in a company added up to the value of the company in effect.

so if theres 7 million shares in total and they are going for a tenner each then that because the company/club is worth 70 million.

i know thats over simplified but thats correct isnt it?

so then what is a share issue? the company just prints another 7 million shares and sells them? doesnt that mean the value of existing shares will likely be halved overnight?
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In your example the 7 million new shares that are printed would raise £70m in cash if sold at £10 a share.. If you add this £70m new cash to the original £70m value of the company it comes to £140m, but you now have a total of 14m shares. Divide the £140m by the 14m shares and it still comes to £10 a share.

Rangers will have a value of assets, but some of the assets will be offset by a level of debt to the 4 Bears giving a net figure. It is this net figure divided by the current number of shares in issue which in theory gives you the current share price.

If you issue more shares to clear the debt the the value will be all the assets without any debt divided by the higher number of shares and should still give you the same theoretical price per individual share.

Obviously there are other factors to be considered such as goodwill and blind faith, but the basic principle should apply:(;):cool:

I hope that this helps
 
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A simple question to Club 1872, can you pay a year in advance the 12x5 as £60.00 gets more funds in for shares as we were thinking about enrolling our Grandchildren in?
 
Anyone remember how much the share issue raised under CG? Still boils my blood thinking of how it was wasted and spent on dodgy directors
 
Beanzie said:
In your example the 7 million new shares that are printed would raise £70m in cash if sold at £10 a share.. If you add this £70m new cash to the original £70m value of the company it comes to £140m, but you now have a total of 14m shares. Divide the £140m by the 14m shares and it still comes to £10 a share.

Rangers will have a value of assets, but some of the assets will be offset by a level of debt to the 4 Bears giving a net figure. It is this net figure divided by the current number of shares in issue which in theory gives you the current share price.

If you issue more shares to clear the debt the the value will be all the assets without any debt divided by the higher number of shares and should still give you the same theoretical price per individual share.

Obviously there are other factors to be considered such as goodwill and blind faith, but the basic principle should apply:(;):cool:

I hope that this helps
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Ah ok, so you're saying that an existing shareholder would still have shares of the same value as he did before, because all the new cash goes into the business so the value of the business goes up?

His shares are a smaller percentage (half) of a wealthier and more valuable company (double the value - theoretically), so the shares keep the same value in the end?

I understand now i think.

But i still dont think thats fair on existing shareholders, because surely (using my example) just because a company gets 70 million in cash doesn't mean the companies value increases proportionally does it. In reality other things restrict the value of a club/company (like being stuck in scottish football), so existing shareholders must surely usually end up with shares worth less than they were before.
 
I dont know much about this stuff so could sombody help me out please.

I dont have any shares so i take it i cant get involved in this?

Take it this is for the large shareholders.
 
Twosignals said:
A simple question to Club 1872, can you pay a year in advance the 12x5 as £60.00 gets more funds in for shares as we were thinking about enrolling our Grandchildren in?
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Yes, there is an option for an annual donation rather than monthly. When you select join us on the website you can then pick monthly, annual or one off donations.
 
Cumbernauld gers said:
I dont know much about this stuff so could sombody help me out please.

I dont have any shares so i take it i cant get involved in this?

Take it this is for the large shareholders.
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It’s unlikely that you would be able to get involved on your own, it looks like Rangers are targeting specific larger investors, most likely to limit the associated costs of the share issue.

You would though be able to make a one off donation through Club 1872, that would then be invested into the club through the share issue and increase Club 1872’s shareholding.
 
Will individuals with minimal shareholdings be able to invest in this one?
 
I would be willing to start off buying 10 shares if they were £10 each, the club needs as much money as it can to stop Celtic and get back in the UEFA Champions League, everyone can afford to spare a tenner as well so big money could be made. Perhaps an option to sign on the Season Ticket renewal form when it comes out.
 
A share issue ought to be available to ALL shareholders and I expect it to be so - non Shareholders can pick up those shares that current shareholders choose not to buy- I will be buying having already invested £500 that CG squandered
 
Will this not merely be to wipe out the loans from King and the 3 Bears ... “loans to equity” allotment of shares ??
 
Where are all my families letters Mr postie?

Not happy .... no Christmas bottle for you this year. Humph.

PS. I consider our combined investment large Mr Rangers. :)
 
Is this share issue just in response to resolution 10 being passed ? I.e existing shareholders?
If so when can we expect the open sale when some real investment can happen after resolution 11 was passed
 
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EssexBear said:
A share issue ought to be available to ALL shareholders and I expect it to be so - non Shareholders can pick up those shares that current shareholders choose not to buy- I will be buying having already invested £500 that CG squandered
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For regulatory, cost and timing reasons (i.e. the regulatory hassle, cost and time to produce a prospectus and put it through the UK Listing Authority) I would be very surprised if a share issue was made directly available to all shareholders and to non shareholders. Indeed the notification posted by the OP makes it clear that what is proposed is a non pre-emptive placing to a limited number of shareholders. Non pre-emptive means that shareholders will not have the right to take up their pro rata share of any share issue.

What I think RIFC plc will be doing is issuing shares to less than 150 people and /or to other shareholders falling within sophisticated / high net worth exemptions, such that the issue is not classed as a "public offer" for regulatory purposes, thus avoiding the need for a costly prospectus.

The beauty of Club 1872 is, however, that I am pretty sure it will be classed as a single investor (i.e. one of the theoretical 150 I refer to above). Club 1872 will therefore represent an indirect route for a share issue to be accessible to a wider group of people. If you put money into Club 1872 then Club 1872 will be able to subscribe for shares. You won't of course have a direct shareholding - i.e. you couldn't put, say, £500 in to Club 1872 and then in 3 years time ask Club 1872 for the equivalent of £500 of shares. The shares will be Club 1872's.
 
EssexBear said:
A share issue ought to be available to ALL shareholders and I expect it to be so - non Shareholders can pick up those shares that current shareholders choose not to buy- I will be buying having already invested £500 that CG squandered
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I understand that to produce a proper prospectus that would satisfy regulations to make an open offer would cost around half a million in fees.

So I expect the forthcoming share issue to convert outstanding loans to shares and some existing shareholders to maintain or increase their shareholdings. In other words, we dilute the Spivs out of existence.

Within a few years I expect another share issue once all legal issues have been tidied up and the club's finances have been ticking along nicely and providing a track record making us credible recipients of investment money on a bigger scale.
 
mdingwall said:
I understand that to produce a proper prospectus that would satisfy regulations to make an open offer would cost around half a million in fees.

So I expect the forthcoming share issue to convert outstanding loans to shares and some existing shareholders to maintain or increase their shareholdings. In other words, we dilute the Spivs out of existence.

Within a few years I expect another share issue once all legal issues have been tidied up and the club's finances have been ticking along nicely and providing a track record making us credible recipients of investment money on a bigger scale.
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I am not ITK in the way that you may well be, but what you say makes perfect sense to me. Indeed £500k for fees would in my experience be on the low side - the reporting accountants', legal and financial adviser/broker fees on a fundraising involving a prospectus are very significant indeed.

The other thing with a prospectus is that you need to disclose everything which is material for investors to make their investment decision. Whilst the club, IMHO, appears to have been as transparent as it reasonably can be with its settlement etc. arrangements with Ashley etc., I suspect that there is a slug of information (be it re Ashley, commercial deals generally or other information) that the club, like any other business, would quite reasonably consider to be commercially sensitive and not want to be summarised or otherwise referenced in a prospectus.
 
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