Interactive Brokers & Retail Share Purchase Plans

[skyQuake]

So you have been able to apply for the VBA entitlement then? I have raised a ticket a couple of days ago but not yet received a response on that one.

I have been given a direct NO on the NAB SPP and it infuriates me - I'm missing out on a roughly $3k profit... I spoke both with NAB investor services and ASIC and apparently there are no rules governing this. If IB say I'm not entitled then apparently I'm not entitled.

Hopefully my experience with other capital raisings proves to be better.

Ask why?

Were you refused by Link Market services or someone or did IB just ignore it?

The SPPs usually state that custodian may apply for on behalf of their beneficiary. Since you are a beneficiary residing in Australia, the nature of the custodian should not matter.

 

[Hideaway]

Ask why?

Were you refused by Link Market services or someone or did IB just ignore it?

The SPPs usually state that custodian may apply for on behalf of their beneficiary. Since you are a beneficiary residing in Australia, the nature of the custodian should not matter.

I have asked why and I have asked them to check again. They applied again to the share registry and were knocked back for a second time because they are a US domiciled company.

Really frustrating... Using IB, I have lost more from missed investment opportunities than I could really have hoped to save from cheaper brokerage.

 

[johenmo]

from memory when I spoke to IB about SPPs (couple of months ago) they said it depends on the company's "policy" regarding foreign investors. because IB is considered US, some companies have it written into their whatever it's called (name escapes me at the oment - getting old) that specifically excludes foreigners. That could very likely be why some of the SPPs don't apply/work. The buy on the phone was very insistent I understand this.

Couldn't find anything on the website but that doesn't mean it's not there.

wish I could find my notes on this - another old age thing!!

 

[skc]

Ask why?

Were you refused by Link Market services or someone or did IB just ignore it?

The SPPs usually state that custodian may apply for on behalf of their beneficiary. Since you are a beneficiary residing in Australia, the nature of the custodian should not matter.

Apparently IB is not running a custodian model. So with SPP (of the ones that they are actually allowed to apply) they simply get 1 maximum parcel (say $15K) and split it amongst the holders under IB who wanted to participate.

Completely stupid if you asked me.

However it seems like the same doesn't apply with rights entitlement.

Thankfully I hold NAB with a CHESS sponsored broker, but looks like I will miss out on BLY's SPP

 

[Barndat]

Oh oh, I just found out about BLY and if I don't get the SPP it will make trading thru IB totally unsatisfactory. I have a COMMSEC account which I may have to use on any stock that hasn't had a capital raising. Now COMMSEC use the Iress platform so I suppose that will attract another set of ASX fee's to pay. Didn't have to pay them on IB.

 

[Hideaway]

Apparently IB is not running a custodian model. So with SPP (of the ones that they are actually allowed to apply) they simply get 1 maximum parcel (say $15K) and split it amongst the holders under IB who wanted to participate.

Completely stupid if you asked me.

However it seems like the same doesn't apply with rights entitlement.

Thankfully I hold NAB with a CHESS sponsored broker, but looks like I will miss out on BLY's SPP

Thanks for the info! I'm at least glad to hear Entitlements work a little bit differently...

FYI - BLY haven't announced the record date for the SPP portion of their capital raise yet, so it may be worth buying some using your CHESS broker as well as you may not have missed the boat on that one.

 

[happymark]

Latest today from IB is the lucrative WATPAC offer is not available through them and also the easy money BKW is a one parcel slice-up. Very wierd.
May be company by company and yet the same "Computershare" handler can have 3 different results. (can do, can do a bit, can not do)

 

[skc]

Latest today from IB is the lucrative WATPAC offer is not available through them and also the easy money BKW is a one parcel slice-up. Very wierd.
May be company by company and yet the same "Computershare" handler can have 3 different results. (can do, can do a bit, can not do)

Where did you hear that? Over the phone or message centre?

I guess it's a bit silly if someone tried to get on the SPP with IB after reading this thread.

For WTP, the stag profit was to be made during the eligible period where the stock went from $1.6 open to $1.9. It looks to be better than the SPP profit esp. if everyone just dump on the open.

 

[happymark]

(Sorry for double submit) Response was from message centre re WTP. Sure there is profit on the existing shares but do you suggest not to try to apply for $15k offers and laugh it off? I guess you have sold all your shares on IB and moved back to commsuc immediatley

 

[skc]

(Sorry for double submit) Response was from message centre re WTP. Sure there is profit on the existing shares but do you suggest not to try to apply for $15k offers and laugh it off? I guess you have sold all your shares on IB and moved back to commsuc immediatley

Yes I had to dust off my Westpac broking account to get WTP.

I didn't trade the stag during the run up to $1.9... only thought about it on hindsight. Tried it with BKW but there was nothing to be had.

So far with IB SPP I've been getting anywhere from 4 to 20% of allocation. So given the popularity and long window of opportunity for WTP, one would be lucky to get 10%, and WTP will probably scale back anyway. So you might get ~10% out of $5-8K, so 500 to 600 shares, with profits of ~20c each.

Just laugh it off mate...

 

[skyQuake]

Just like to add that I got full allocation for AOK, higher than expected for SDM, rejected on BKW (lol wtf), IB was too slow on MOX, and full on BPH (damnit).
Think I'll pass on BLY, you guys enjoy; putting my capital in an aussie shortfall offer.

 

[skc]

So the WTP SPP allocation approach is out.

Everyone will get 400 shares minimum. Anyone with 1100 or less shares will get scaled back to 3x original holding. Anyone with 1101 and more will get full allocation.

Actually quite fair imo and doesn't reward too many new holders who just joined in for the stag. But you'd be very very pi$$ed if you got 1100 shares.

So for anyone who bought a $500 parcel at say $1.6 (313 shares), they will get ~940 shares. Current price $1.52 minus issue price $1.25 leaves $0.27c per share, so $254 profit on the new shares. The old shares are worse off by $32. Taking away brokerage say $25 each way... That's $200 net profit. Not bad for doing a few clicks. Terrible if you have already got a car loan.

If people bought a $500 parcel at the peak $1.9, they net ~$60. Not bad for a steak dinner, terrible if you have already booked a holiday.

Let's see what the lucky IB holders get (just so that the post is on topic).

 

[freebird54]

Just got this from IB

"Unfortunately SPP's are not offered for trading through Interactive Brokers. We apologize for any inconvenience, if you have any further questions please let us know. This trouble ticket inquiry will now be closed."

So will keep Commsec open - wish I didn't have to they stuffed me around on the transfer to IB - nearly a month

 

[skc]

Just got this from IB

"Unfortunately SPP's are not offered for trading through Interactive Brokers. We apologize for any inconvenience, if you have any further questions please let us know. This trouble ticket inquiry will now be closed."

So will keep Commsec open - wish I didn't have to they stuffed me around on the transfer to IB - nearly a month

Are you referring to WTP or another stock in particular?

 

[freebird54]

Are you referring to WTP or another stock in particular?

all stocks

 

[skyQuake]

all stocks

Can you provide the context of this? A fair few of us applied for BLY and ELD successfully.

 

[skc]

all stocks

Can you provide the context of this? A fair few of us applied for BLY and ELD successfully.

Well.. they have taken money out of my account for BLY and ELD, and charging me interest for it. So they better not turn around and tell me they don't do SPP!

I do sometimes have a suspicion that different customer service reps will have different understanding (and hence response) of the rights clients have in terms of SPP participation under IB. I certainly hope that is not the case.

Freebird, who was your ticket assigned to?

I am also slightly concerned that they change the rules around funding SPP without informing all Aussie clients. I would have thought a mass email was the least they should do.

 

[freebird54]

Well.. they have taken money out of my account for BLY and ELD, and charging me interest for it. So they better not turn around and tell me they don't do SPP!

I do sometimes have a suspicion that different customer service reps will have different understanding (and hence response) of the rights clients have in terms of SPP participation under IB. I certainly hope that is not the case.

Freebird, who was your ticket assigned to?

I am also slightly concerned that they change the rules around funding SPP without informing all Aussie clients. I would have thought a mass email was the least they should do.

ticket assigned to VAROON

 

[skc]

Got a reply today that the BLY SPP offer is not available through IB because they are US company blah blah blah. I got no problems with that.

But they took the money out of my account and will now have to refund it. Why on earth did they take money out of the account if application is not possible anyway? Don't they check whether they can apply before they take the money out?

Now that I have a problem with.

For me it's a few $ of interest paid - no big deal. But I know for someone else they had positions liquidated because they didn't have enough money. You'd have every right to be pi$$ed off.

 

[freebird54]

I have moved my MOS stock from comsec to IB but have applied for the SPP through the paperwork I had whilst shares were at Comsec so I wonder what will happen.