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EasyJet Rights Issue FAQ


AndaIG

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FAQs for Easyjet rights issue - (Sharedealing and ISA clients only)

 

1.      What are the terms of the Easyjet rights issue?

 ·        Ex-Date - 13/09/21

·        Terms - 31 new shares for every 47 existing shares held on your account

·        Subscription price - £4.10p (the price at which the new shares will be booked at after pay date if you decide to take up the offer)

 

2.      How do I take part in this rights issue and when will I get these new rights

 ·        If you hold a Easyjet position on the close of business 10/09/21 then we will book the new rights on your account on the Ex-Date 13/09/21

·        To take part please email corporate.actions@ig.com stating your intent to take up the offer.  Please stipulate your account number/ID on the email.

·        We will email you a confirmation that we have received your election, but as we will expect high volumes, please bear with us as it may take up to 48 hours.

·        There will be no option to take up Excess or more than your allocation on your account

 

3.      How many new shares can I receive if I had 1000 Easyjet shares originally on close of business the day before Ex-Date

 ·        You will have 659 Rights booked on the account on Ex-Date 13/09/21

·        If you take this offer up you will receive 659 new Easyjet shares booked at an opening price of £4.10 (Subscription price) after pay date (28/09/21)

 

4.      When is the deadline date and time?

·        21/09/21 4:30pm UK time - The Deadline date is the point where Sharedealing and ISA clients need to make sure the total available cash amount to take up the offer is available on their account.

 

5.      What happens if my ISA is at the maximum allowance?

 

·        You will need to email corporate.actions@ig.com stating your ISA Account number/ID, the Sharedealing account number/ID, your wish to take up the offer and that you would like the new Shares transferred to this Sharedealing account.

·        Please make sure to fund the Sharedealing account by the Deadline Date & Time and make sure these funds are held on the account until paydate (28/09/21). We will not accept unsettled cash.

 

6.      When can I trade the rights?

 ·        Ex-Date 13/09/21 to IG Deadline date 21/09/21 4:30pm UK time

 

7.      Can I choose to sell my Rights?

 ·        Yes of course, please log into the platform and trade out of the position accordingly. You will not be able to trade out of the rights after the deadline date.

 

8.      I have elected, but now want to sell my Rights.  Can I?

 ·        Yes, no problem.  The election will not be processed. No further action is required by you.

 

9.      I missed the IG deadline, can I give my instructions now?

 ·        No, we have a strict deadline so any instruction given after the IG Deadline will not be valid.

 

 10.   I gave my instructions but I don’t have the funds.

 ·        Funds have to be in the account by the IG Deadline and no later than that. If funds are not in the account when the deadline comes around, the given instructions will be voided.

 

 11.   For Sharedealing and ISA clients, do I need to deposit funds and if so when do they need to be deposited?

 ·        Yes,  you need to have sufficient settled funds to cover the cost of the new shares by IG Deadline Date (21/09/21 4:30pm UK time)

·        Please make sure the relevant account where you are holding the Rights is adequately funded by Deadline date. The Corporate Actions department will not take an instruction to transfer cash between accounts and this will be the client’s responsibility.

·        If the funds are not available on the account at the deadline time, we will not process your election.

·        As long as we have received your email with your election preferences ahead of the IG deadline date and your account is funded on that date, then your election will be processed.

 

12.   How do I know how much cash I need to fund my ISA or Sharedealing account by Deadline Date?

 ·        Use this simple equation – Rights on your account * Subscription price = Funds needed by Deadline date

·        Example 100 Rights * £4.10p = £410

 

13.   Can I make a partial election?

 ·        Yes, that is ok. Please state clearly on the email reply the number of shares you would like to take up (The total share amount for Sharedealing and ISA accounts) and not monetary value (for example - £500 worth of shares, as this will not be accepted).

 14.   I have replied to corporate.actions@ig.com with my election, what do I need to do now?

 ·        The only thing left to do is make sure your account is funded accordingly to cover your new position by Deadline Date (21/09/21 4:30pm UK time) and not Pay date. We will email you a confirmation that we have received your election, but as we will expect high volumes, please bear with us as it may take up to 48hrs. As long as we have received your email with your election preferences ahead of the deadline and your account is funded then your election will be processed.

 

15.   What happens if I have not elected and do nothing?

 ·        The Rights will lapse and be removed off your account after pay date (28/09/21) You may receive remuneration in the form of lapsed proceeds if this is part of the event, but this is not guaranteed.

 

16.   When is the Pay date?

 ·        Pay date is the 28/09/21

·        IG should receive the new shares 1-5 business days after the pay date from our broker and this is when the rights are removed and Easyjet shares booked on clients’ accounts who elected to take up. Lapsed Rights proceeds are usually known 10 working days after deadline date and paid after pay date, if this is part of the event. An email will be sent when all bookings have been made.

 

17.   What happens if I have a working order in a stock that’s having a rights issue on ex-date? 

 ·        All working orders will be deleted pre-market on ex-date. 

 

FAQs for Easyjet rights issue - (Leveraged clients only)

 

1.      What are the terms of the Easyjet rights issue?

 ·        Ex-Date - 13/09/21

·        Terms - 31 new shares for every 47 existing shares held on your account

·        Subscription price - £4.10p (the price at which the new shares will be booked at after pay date if you decide to take up the offer)

 

2.      How do I take part in this rights Issue and when will I get these new rights

 ·        If you hold a Easyjet position on the close of business 10/09/21 then we will book the new rights on your account on the Ex-Date 13/09/21

·        To take part please email corporate.actions@ig.com stating your intent to take up the offer.  Please stipulate your account number/ID on the email.

·        We will email you a confirmation that we have received your election, but as we will expect high volumes, please bear with us as it may take up to 48 hours.

·        There will be no option to take up Excess or more than your allocation on your account

 

3.      How many new shares can I receive if I had 1000 Easyjet shares originally on close of business the day before Ex-Date

 ·        You will have 659 rights booked on the account on Ex-Date 13/09/21

·        If you take this offer up you will receive 659 new Easyjet shares booked at an opening price of £4.10 (Subscription price) after pay date (28/09/21)

 

4.      When is the IG deadline date and time?

 ·        21/09/21 4:30pm UK time

 

5.      When can I trade the rights?

 ·        Ex-Date 13/09/21 to IG Deadline date (21/09/21 4:30pm UK time)

 

 6.      Can I choose to sell my Rights?

 ·        Yes of course, please log into the platform and trade out of the position accordingly. You will not be able to trade out of the rights after the IG deadline date.

 

7.      I have elected, but now want to sell my Rights.  Can I?

 ·        Yes, no problem.  The election will not be processed. No further action is required by you.

 

8.      I missed the IG deadline, can I give my instructions now?

 ·        No, we have a strict deadline so any instruction given after the IG Deadline will not be valid.

 

9.      Can I make a partial election?

 ·        Yes, that is ok. Please state clearly on the email reply the number of shares you would like to take up (The total share amount for CFD accounts and the total Per Pt amount for Spreadbetters) and not monetary value (for example - £500 worth of shares, as this will not be accepted).

 

10.   I have replied to corporate.actions@ig.com with my election, what do I need to do now?

 ·        Nothing. We will email you a confirmation that we have received your election, but as we will expect high volumes, please bear with us as it may take up to 48hrs. As long as we have received your email with your election preferences ahead of the IG deadline your election will be processed.

 

11.   What if I have a short/sell position booked on my account, what happens to my position and what are my options?

 ·        As you are short you will have two options. The first is to trade out (buy back) of the rights before the IG deadline date to close the position. The second is to do nothing and risk your position being taken up automatically depending on the result of the offer. Doing nothing could mean having the rights removed around the pay date and potentially having a new short position in the stock booked at the subscription price.

 

12.   I have a guaranteed stop on my position, what happens to my position?

 ·        If you hold a position with a guaranteed stop on the close of business the day before ex-date, this means the morning of Ex-date pre-market we will amend your position to automatically take up the rights or offer on your behalf. The stop, level and size will be amended to keep the monetary risk the same as pre event. This procedure will usually take place if the offer is in the money on ex-date, otherwise no action will be taken. There is nothing else for you to action on this event.

 

13.   I have a non guaranteed stop and limit on my position, what happens to them?

 ·        Any non guaranteed stops or limits are amended accordingly by the terms of the event to take onboard the dilution of the price in the underlying stock.

 

14.   What happens if I have not elected and do nothing?

 ·        The Rights will lapse and be removed from your account after pay date (28/09/21)

 

15.   When is the Pay date?

 ·        Pay date is the 28/09/21

·        IG should receive the new shares 1-5 business days after the pay date from our broker and this is when the rights are removed and Easyjet shares booked on clients’ accounts who elected to take up. An email will be sent when all bookings have been made.

 

16.   What happens if I have a working order in a stock that’s having a rights issue on ex-date? 

 ·        All working orders will be deleted pre-market on ex-date. 

 

 

 

 

5 Comments


Recommended Comments

Guest WayneM

Posted

Hi IG team,

Hope you are well. 

I have an EasyJet position of 500 on my spread betting account and due to the corporate action of right issue I would have expected a new separate EasyJet  Right position being booked onto my account, as would be the case if I was holding the actual shares on a share trading account. 

But I had my position adjusted by the rights issue number of shares from 500 to 830 (31 for 47 held)

Can you advise on:

Why would I not have a separate new Rights EasyJet position booked onto my account but my original position adjusted from 500 to 830?

Would I need to reply to your corporate actions team to confirm I would like to take up the rights issue? 

Regards,

Thanks.

Wayne 

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Hi @WayneM

Thanks for the question

You should have had a separate rights line booked onto your account, if this is not the case please contact helpdesk.uk@ig.com with your account details so that the issue can be looked into. 

Thanks

Anda

 

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I only had 13 shares in easyJet on the 13/09/21.

Does that mean that I can elect to claim a further 19 shares or is the minimum 31 shares held ?

Link to comment

Hi @Vic247

Thanks for reaching out

The terms are 31 for every 47 held. If you held 13 shares on Monday you would be entitled to purchase another 8. (13/47)*31

Thanks

Anda

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Hi IG team,

Under the leveraged client section of the easyJet rights issue FAQs, it does not specify when the additional margin is required in your account. 

For leveraged clients am I right in assuming the additional margin is only required on the Pay Date (28/09/2021) as opposed to the Deadline date (21/09/2021)?

Thanks,

Phillip

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