Missed out on Saga shares? Refund may be delayed
Many of the people who unsuccessfully applied to buy Saga shares when it launched on the stockmarket are still waiting for a refund. Apparently all the refunds have been processed, but technical issues mean that the money hasn't been returned to people's bank accounts.
So what can you do if your refund is still outstanding?%VIRTUAL-SkimlinksPromo%
When Saga was launched on the stockmarket, there were many people who missed out. The firm decided to prioritise applications from employees and customers, and everyone else received a maximum of £740-worth of shares - no matter how many they had applied for.
The company insisted that more than two thirds of retail investors had been granted at least 50% of the shares they had applied for. However, there were plenty of people who received far less than they had paid for - to the tune of thousands of pounds.
In its prospectus, Saga had promised to process all refunds by 29 May. However, the BBC reported that although they were processed by then, the administrator - Capita - was unable to return the cash to applicants.
The Telegraph reported that when people queried the refund, Saga emailed them saying: "Shareholder refunds were processed by 29 May, as committed to in our prospectus, with all monies due to be cleared in accounts by the 5th working day - being 5 June. Last week the scheme's administrators, Capita, hoped it would be possible to beat this date but regrettably this has not been achievable due to problems within the banking system."
What can you do?The company has said that most of the refunds will be completed by the end of the day today. However, some people will not have their money by then. If you still haven't had your money by the end of the working day they ask that you call 0800 015 5429 or email email@example.com.
It's frustrating to have to wait, but unsuccessful applicants may be able to console themselves with the fact that they didn't exactly miss out on a blockbuster floatation that would have made them rich overnight.
The shares were priced at 185 pence, which was right at the bottom of the proposed range of prices, after it failed to attract big institutional buyers. Within a week, the share price had dropped almost 7%. Today one of the largest hedge fund companies took a massive position against the company (which means it will make money if the share price falls further). It is a strong indication that those shareholders who received shares are unlikely to see a profit for some time to come.