Rights issue and Interactive Brokers

[diliff]

Hi guys..

I have an Interactive Brokers account and one of the stocks I'm holding has announced a rights issue - SSM in this case. Now, I've never participated in one before so I'm not 100% sure of the process in the first place, but if I understand it correctly, because IB deal with my portfolio differently to most brokers, they don't use CHESS? I don't seem to get all the literature from the various investor departments of the companies I hold stocks with as I used to get with Westpac Broking, and if I understand it correctly, any dividends are paid directly into my IB account, rather than sent to me in the mail. Is all this correct so far?

Okay, that brings me to the question.. How does one go about participating in a rights issue with IB? I had a quick look at the IB website but it can be quite hard to find any Aus specific info... Thought I'd ask the question here to get my head around it, hoping someone has been through the process before with IB. Service Stream's statement regarding the issue says "Eligible Shareholders will receive an Offer Statement including personalized Entitlement and acceptance Form in relation to the Entitlement Offer which will provide further details of how to participate." but if I don't receive this sort of literature in general, I'm guessing that I won't get their form either? Is it simply a matter of contacting their investor department and requesting the form?

Thanks,
David

 

[skyQuake]

Hi guys..

I have an Interactive Brokers account and one of the stocks I'm holding has announced a rights issue - SSM in this case. Now, I've never participated in one before so I'm not 100% sure of the process in the first place, but if I understand it correctly, because IB deal with my portfolio differently to most brokers, they don't use CHESS? I don't seem to get all the literature from the various investor departments of the companies I hold stocks with as I used to get with Westpac Broking, and if I understand it correctly, any dividends are paid directly into my IB account, rather than sent to me in the mail. Is all this correct so far?

Okay, that brings me to the question.. How does one go about participating in a rights issue with IB? I had a quick look at the IB website but it can be quite hard to find any Aus specific info... Thought I'd ask the question here to get my head around it, hoping someone has been through the process before with IB. Service Stream's statement regarding the issue says "Eligible Shareholders will receive an Offer Statement including personalized Entitlement and acceptance Form in relation to the Entitlement Offer which will provide further details of how to participate." but if I don't receive this sort of literature in general, I'm guessing that I won't get their form either? Is it simply a matter of contacting their investor department and requesting the form?

Thanks,
David

IB does ALL the paperwork for you. Which is kindof a good thing. With SPPs you might get screwed and get less, but Rights issues and stuff I don't think IB scales you back.

Basically go to Acct Management > Message center > New ticket
> Choose corporate actions etc. And fill in the details of the message pad.

Because IB does the paperwork for you, please note that IB now requires you to submit the ticket to them 10 days before the offer closes.

Cheers

 

[SilverRanger]

Pretty much self-explainatory in the link below, look under Corp Action Instructions

http://www.interactivebrokers.com/en/p.php?f=deliveryExerciseActions&ib_entity=llc