After taking some advice from a mate in the City, I'm re-jigging this posting and just confirming the numbers.
Now that the dust has settled, and OPAY has been resumed trading on the markets, the share price has settled down to approx 565 per share. That means my OPAY shares are worth £22,600.
My overall SIPP value stands at £89,170 including cash of £3,943.30
Where I go from here with OPAY, I'm not too sure.
To take up the rights issue - 5 new shares for each of my 3 existing shares - I will have to find another £11,332 plus dealing costs (if any). I'm entitled to 6,666 new shares at £1.67 each.
What I may do is sell off part of my options to the rights issue to finance exercising part of it.
Should I exercise the option, I'd have 10,666 shares worth approx (£22,600 plus £11,332) £33,932
This implies a share price on Day-1 (post rights issue) of £3.18 approx.
This takes no account of any "market approval" of the rights issue, but there may (or may not) be an uplift on Day-1.
If I do not exercise the option, but decide to sell it, then I should be able to sell the option to the rights issue at £1.51 per (new) share - this is £3.18 less the option price of £1.67. That will give me approx, £10,000 in cash, and I will retain my 4000 shareholding which will be worth (at £3.18 a share) approx £12,720. Note: £10,000 + £12,720 is approximately equal to the current value of the shares which is £22,600.
I have a couple of weeks to ponder this over, and decide whether to take:-
1) the £10,000 in cash (this seems to be the simplest option);
2) finance the rights-issue either in part;
3) finance the rights-issue in full;
4) Post rights-issue: whether to hold-on for a few weeks or sell-off a major portion and rebalance my portfolio.
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