Confusing warning message from InteractiveBrokers

Hi all,

I own a specific stock for the last 6 months or so, and did a few transactions on it: DUFN.

Today, after putting in another order, I was surprised by IB with the following message:

The product DUFN.RTS is provided on an indicative and informational basis only. IB does not represent the valuation for this instrument is accurate. […]

I am confused. What do they mean by this? Its the first time I see something like this.

The trigram after the dot refers to the place of quotation.

RTS = Russian Trading System

I would encourage you to look at the stock price on SWX (SIX/Swiss exchange) = main place of quotation for Dufry AG.

DUFN.SW

https://www.bloomberg.com/quote/DUFN:SW

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I also have some DUFN shares in my portfolio and noticed that popup too.

There is a message in the IB mailbox asking me to take an action, it sounds like a proposal from Dufry to subscribe to a new product but being at work right now, I have not had time to figure out the implications.

If somebody knows more or has an opinion on this offer, I’m definitely interested.

.SW or another exchange?

Thank you so much for that clarification!

However, this is still unclear…

I do own DUFN on the SIX Swiss Exchange (EBS). But now, in my portfolio, a new line with DUFN.RTS appears!, with zero or no values:

Trying to ‘Close position’ I am being told:

I do not remember to buy this… Since I do have the ‘good’ DUFN from EBS.

I have som DUFN as well, go to your message center and there you can chose how many rights you want to excercise. I thibk the rights are not tradable and have therefore no value. Hope this helps.

Edit: maybe you didn’t see that Dufry increases their capital. That is why you have rights booked into your account in the first place. https://www.dufry.com/en/press_release/2020-10-06/dufry-publishes-terms-planned-capital-increase-way-rights-offering

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Hey @Don, thanks for the answer!

So indeed, I do have a message there. Now, I have no idea what this is. I think I will just ignore it? It seems like I can allocate by 45 currently owned shares as Rights? What product is this?

For every 9 shares that exist, they will issue 4 new shares. That means you can buy [0;4;8;12;16;20] new issued shares at a price [between 28.5 CHF and the market price???] to be determined on the 20th october. If you ignore this, Advent International and/or Alibaba will buy the 20 new shares you refuse to buy.

You just put a lot of pressure on me…

Thanks for the reply! :slight_smile:

But I would be buying from the strange DUFN.RTS - Russian Trading System.
Why is Dufry AG doind this, instead of just using SIX?

No. RTS means right of subscription in that context. DUFN.RTS is what you own at the moment (in addition to your shares)

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I could also phrasing the events like that, if you want less pressure

Dufry has projects to create a joint venture with Alibaba, to increase their online capabilities. They want to buy the remaining share of Hudson Ltd as well. For that they need new money, that the nice Advent International and Alibaba would be happy to provide. But regulations are here to protect the investors, so you have the right, should you want to, to keep your exact % in the company.

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RTS probably stands for “rights” in that context.

This should explain what this is about:

Basically you don’t really need to do anything. Those RTS things will go away on the 19th or 20th of October.

They also aren’t really a benefit for small retail investors. You can always buy a few shares without problems.
They are meant for people that own like 30% of the company, so their rights don’t get instantly diluted when new shares are created.

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