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After some help with Rolls-Royce Holdings PLC (RR.L)

Personal Finance & Money Asked on June 9, 2021

I need help understanding RR.L(Rolls Royce Holdings Plc) Charts. Same graphs , same time frame but different side numbers what am I missing??? Here???? Here’s some pictures. Any help cheers!!

https://www.barchart.com/stocks/quo…&sym=RR-.LN&grid=1&height=500&studyheight=100

https://tradingeconomics.com/rr:ln

https://www.londonstockexchange.com/stock/RR./rolls-royce-holdings-plc/company-page?lang=en

One Answer

The tradingeconomics page is showing RR at 620 on 28 Feb 2020, and 113.6 on 2 Oct 2020. The LSE one is is showing it at 210.8 on 28 Feb, and 38.624 on 2 Oct. The prices are in the same ratio, with the LSE one being 0.34x the TE one.

However, there is a sharp discontinuity on the TE page at the end of October. After that, the prices are the same - 134.9 on 3 Dec, for example.

So what happened? At the end of October, Rolls Royce issued a large amount of new stock:

In order to raise £2 billion, Rolls is issuing 6.4 billion new shares. This will give shareholders the right to buy 10 new shares for every three already owned, at a price of 32p per new share. The move will increase the total number of Rolls shares in existence by 333%, from 1.93 billion to 8.37 billion. With so many new shares in circulation, shareholders will see their holding diluted by 77% if they don't take up their rights.

It looks like the LSE table has been adjusted to reflect this, projecting an adjusted value backwards in time ("a share you hold today would have been worth X in January") while the TE table has not been adjusted, and is reporting contemporary values ("a share you held in January would have been worth Y")

Answered by Andrew on June 9, 2021

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