Check this out - is this the worst right issue response of all time? 0.24%?
The Royal Bank of Scotland Group plc (”RBS”) - Result of Placing and Open Offer - RBS today announces that, as at 11:00am on 25 November 2008, being the latest date for receipt of valid subscriptions, it had received valid acceptances in respect of 55,977,458 new RBS ordinary shares,representing approximately 0.24 per cent of the total number of new RBS ordinary shares offered to shareholders pursuant to the 18 for 13 Placing and Open Offer announced by RBS on 13 October 2008 (the “Open Offer”). In accordance with the arrangements set out in Part III of the Placing and Open Offer prospectus dated 4 November 2008 (the “Prospectus”), at closing HM Treasury will take up the remaining 22,853,798,818 new RBS ordinary shares, for which valid acceptances were not received. As a result, HM Treasury will own approximately 57.9 per cent. of the enlarged issued ordinary share capital of RBS.
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The Royal Bank of Scotland Group plc (RBS) is a holding company of a global banking and financial services group. The Company operates in the United Kingdom, the United States and internationally through its two principal subsidiaries: The Royal Bank of Scotland plc (the Royal Bank) and National Westminster Bank Plc (NatWest). Both the Royal Bank and NatWest are clearing banks. In the United States, the Company’s subsidiary Citizens Financial Group, Inc. (Citizens) is a commercial banking organization. The Company’s business segment include UK Retail, UK Corporate, Wealth, Global Transaction Services, Ulster Bank, US Retail & Commercial, Global Banking & Markets (GBM), RBS Insurance, Central items, Non-Core Division and Business Services. In May 2012, The Paragon Group of Companies PLC announced the acquisition of further unsecured consumer loans, through its Idem Capital Securities subsidiary, from the Company. more »
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This was inevitable, since the new shares were more expensive than the price of the existing shares on the stock market. I am surprised they even got 0.24%!
Interestingly, Citigroup put RBS price target at 100p and has rated the shares a buy in the medium term.
On reflection, I agree, now that the messy rights issue is out of the way. Sure, nationalisation means that there will probably be interference from a non-commercial government agenda. But at least the liquidity problems are solved, and it's still a great business in many ways, especially now that they will pull back from toppy credit bubble lending.
Sentiment updated!
Merrills have come up with a similar view - http://www.stockopedia.co.uk/news/comments/RBS/37
RBS shares weirdly up 10% today despite confirming that a deal to sell its Pakistani business fell through. Bad news is good news? Go figure.
http://www.ft.com/cms/s/0/aee0f6aa-f904-11de-80dc-00144feab49a.html