Sirius Minerals plc joins the main market. What should investors expect next?
Mootley Fools - Paul Summers | Friday, 28th April, 2017

At 08:00 today, shares in polyhalite miner Sirius Minerals (LSE: SXX) moved to the main market and (although still to be confirmed) a place in the FTSE 250. As the Alternative Investment Market (AIM) loses one of its nine companies valued over £1bn, what does this huge step mean for the firm and its investors?

Raised profile
Of course, the instantaneous suspension of shares on AIM and admission to the main market won’t make a difference to holders of Sirius Minerals in some respects. No new shares are being issued to coincide with the move, nor does Sirius have any intention of raising capital in this way. The company’s ticker also stays the same. That said, there are some things that definitely will change.

First, Sirius will be getting a lot more attention from fund managers both in the UK and overseas. As a result of rules preventing them from investing in any shares on the junior market, they were previously denied the opportunity of buying into the North Yorkshire success story. Even if access was previously permitted, the move to a market where corporate governance and regulation are more stringent is sure to inspire confidence in institutional investors keen to avoid career-ending decisions.

Second, the fact that index trackers and exchange traded funds will be forced to buy the stock ensures that some uplift is likely over time. This will happen regardless of how risky the company is regarded as being by those running these passive vehicles. And with that comes even greater liquidity.

Third, the move is likely to raise the company’s profile in a more general sense and beyond the investment community. Indeed, CEO Chris Fraser and his management team were keen to stress that entry into the main market would not only provide the company with a “more appropriate platform for its growth” but also be in keeping with the “nationally significant nature” of its project.

Of course, none of the above mean that the share price must soar. That will be dictated by the company’s performance and, for the next few years, progress with the construction of the Woodsmith mine. On this front, however, all seems to be going smoothly, explaining why shares in Sirius have jumped 49% in only a month. Investors will be hoping for more of the same after the next quarterly update, due at the end of June.

Of course, a successful move to the main market is never guaranteed. While some companies have thrived, a number have faltered. Falling firmly in the former camp would be Domino’s Pizza, self-storage mid-cap Big Yellow and online betting company, GVC. In the latter, you might include clothing retailer Bonmarche and Gulf Keystone Petroleum. Some companies have even returned to the junior market over the years.

One thing that investors must also be aware of is that they will now be required to pay Stamp Duty Reserve Tax whenever they purchase stock in Sirius. Right now, this is calculated at a flat rate of 0.5% (rounded up or down to the nearest penny) based on how much is paid. Buying £5,000 worth of stock in Sirius today will therefore set you back £25 more than it would have done yesterday (£5,000 x 0.05%). As always, commission costs and the bid/ask spread also need to be considered.

mentor - i see you voice no view :-) ..... can't say i blame you

no question that SXX is a very interesting stock, but as i have said previously, with so many major unknowns is this really the time to be piling new money into this stock?

it certainly would not surprise me to see sp at half the current price before production starts, not least because there is further heavy dilution on the foreseeable horizon

The Sunday Times article - Yorkshire moors’ hidden harvest

The Mail on Sunday article - MIDAS SHARE TIPS: Sirius Minerals digs deep to mine in the Yorkshire Moors

i wrote about the ST article yesterday

my view remains constant

cynic
I'm still here from under 19p still looks a good long term play to me..

if you're already in at 19p then there is reason to stay put
my comment was about throwing in new money

Have topped up twice since at 22.58p and 24.75p

I think it's a case of "an unstoppable force meets an immovable object?"......:o)

Unstovable. New word with many interpretations, a bit like the future of SXX! I am holding for the long term.

i shall just put on my watchlist and try to remember to look occasionally

Seems the 200 DMA was too much of a barrier.

Anything that goes up more than 50% must go down eventually, and that was the case last Friday.

Yesterday movement up was an opportunity to sell due to weekend positive views long term, some times some paper/writers are being paid by Individuals to do that in order to get out because they missed the chance to close positions in time in its high

Intraday low 16.75p
Intraday high 26.625p
Dif - up 9.875p or up 59%

Another down day. Sub 22p would interest me again for a buy.

Issue of shares pursuant to convertible bonds

Sirius Minerals Plc ("Sirius" or the "Company") announces that it has received two conversion notices in respect of the US$400 million convertible bonds due 2023 which were issued by Sirius Minerals Finance Limited as part of the Company's stage 1 financing and announced on 3 November 2016 (RNS number 2246O), pursuant to which it will allot and issue 1,300,390 new ordinary shares of £0.0025 each (the "Relevant Shares").

An application has been made for the Relevant Shares to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority (the "FCA") and to trading on the London Stock Exchange plc's main market for listed securities, and dealings are expected to commence at 8.00 am on 5 May 2017. The Relevant Shares will rank pari passu in all respects with all existing ordinary shares in the Company.

In accordance with the requirements of the FCA's Disclosure Guidance and Transparency Rules 5.6.1AR and 5.6.2G, the Company confirms that the enlarged share capital of the Company following Admission will be 4,165,814,795 Ordinary Shares in aggregate, each with equal voting rights. No shares are held in treasury. The above figure may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Sirius Minerals Plc under the FCA's Disclosure Guidance and Transparency Rules.

Liberum Capital Buy 25.25 60.00 60.00 Retains

Link copied :- Sirius Minerals in detailed offtake discussions as site preparation starts

Starting to look up again.

30p now doing well should have had some more.

SXX. now in the FTSE 250 from June 19.

http://www.ftserussell.com/sites/default/files/ftse_uk_series_index_review_final.pdf

Sirius Minerals' FTSE 250 elevation underlines growing market confidence in the Yorkshire project

http://www.proactiveinvestors.co.uk/companies/news/178658/sirius-minerals-ftse-250-elevation-underlines-growing-market-confidence-in-the-yorkshire-project-178658.html