Infront trades ex rights idag - det forklarer “nedgangen” på 11% - som egentlig er flatt, justert for verdiene av tegningsrettigheter på 3,60 pr aksje som aksjonærer som satt på aksjen i går får.
Det er viktig at man aktivt gjør noe med tildelte tegningsrettigheter. Jeg skrev en liten “voksenopplæring” om dette, som jeg tillater meg å dele også her:
If you follow the INFRNT stock, you might be a bit worried that it seems to be down 11% today.
But it is not really.
The reason is this:
What does all that mean? Well, it means that if you owned INFRNT shares yesterday, you will get subscription rights for those shares.
And the (theoretical) value of those subscription rights are 3,60 NOK per share. If you buy stocks today, those stocks do not qualify for getting any subscription rights, so the stocks have a corresponding lower price.
So the stock price should fall to the TERP price today (Theoretical Exclusive Rights Price). And accoring to the exchange message from Monday, the TERP price is 19,40 NOK.
Which is where the stock price is now.
Use your subscription rights!
A key takeaway for Infront stockholders is that you * must * take action. On Friday this week your VPS account will have mysterious INFRNT TR instruments. Use them to either sell them for money (on the stock exchange) or hold them and use them to sign up to buy shares at an attractive price (14 NOK pr share). If you do nothing, you will loose the money that the subscription rights represent (the value is in theory your number of stocks * 5,40 NOK * 2 / 3).
To be even more precise and give more details.
Let’s take a hypothetical example:
In the two week period until 21. June you have to decide what to do and do it.
You basically have four options.
Exercise all your rights and subscribe to shares for all of them. This must be done in your VPS account – login via your broker or via https://investor.vps.no/garm/auth/login
You need to provide the account number of a Norwegian bank and ensure that you have enough money in it to buy the shares. This will cost you 2000 * 14 = 28 000 NOK – and you will get 2000 new INFRNT shares
Sell all your rights to get money for them. This must be done with your broker account – either using their web-based tool or the Infront Terminal (provided we support trading integration with them). You must find the INFRNT TR instrument, check what the live market price is right now and decide when and at what level you want to sell them. Depending on market conditions, timing, volume etc you can expect to get anything from 0,10 to 5,40 NOK for each right. Let’s say you get 5 NOK per right – then you’ll net 2000 * 5 = 10 000 NOK into your trading account (that you can subsequently withdraw – or buy shares later, INFRNT or otherwise).
A mix of the above. Depending on how much cash you want to spend or withdraw, you can sell a portion of the subscription rights and sign/subscribe for the rest. One popular solution is to stay cash-neutral – so that you sell enough rights to just have enough cash to sign for the rest. In our case, we get 5 NOK per right, so selling 1460 rights gives you 7 300 NOK, enough to sign 540 shares for the remaining rights (540 * 14 = 7560), leaving you with 260 NOK in cash (which should cover the commission fees). Remember to transfer the money from the sale to a bank account that can be used to pay for the subscribed shares in VPS.
Do nothing – and lose the value of the subscription rights (you lose ~10 000 NOK).