Unit split Not sure why they go and call it a "unit split"... Should a lot more to be like a "spin off". It's not like shareholders of 10 BIP.UN shares are now holders of 9 BIP.UN + 1 BIPC. They keep their shares in BIP.UN entirely and have been spinned out 0.11 shares of BIPC.
I've been trying to get into BIP as a new long position in result of this market crash.
But comparing apples to apples is a little difficult now with this split.
1- Bassically, my understanding is that 9 shares of BIP.UN got you 1 share of BIPC if you were a shareholder of record on March 20th.
Today's close on BIP.UN = 51.1$ while it was at 47.1$ on March 20th.
However, March 20th shareholders were also owners of 1/9 shares of BIPC... While today's shareholders aren't.
So the value of shares today, in order to be ajusted to March 20th value would have to be ajusted by 1/9th of a share of BIPC.
Since BIPC closed at 49.27$:
51.1 + 0.11x49.29 = 56.52$
Am I wrong here?? I'm having a hard time following.
2-Also, as one member was pointing there should have been a big drop due to the split at the end of trading on March 18-19 or 20, but the chart shows nothing like that.
3-And concerning the Arb situation, it's because BIP.UN and BIPC should have equal value in the end, and the discrepency is a result in BIPC's lower liquidity?
Thanks to anyone who can validate what I'm saying or point me to where I don't understand.