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CIMB issues call warrant on foreign-listed shares

April 6, 2012

KUALA LUMPUR: CIMB Bank has issued a new European-style Non-Collateralised Cash-Settled Call Warrant over the ordinary shares of Parkson Retail Group Limited, listed on the Hong Kong Stock Exchange.

The call warrant, the first of its kind to be listed on the local bourse over underlying shares listed abroad, is issued at an exercise ratio of four and will expire on March 29, 2013. The warrant gives Malaysian investors an opportunity to gain exposure to the Chinese economy, which is poised to capitalise on the emergence of the Chinese middle-class and China’s transformation from an export-oriented economy to a domestic-demand oriented economy.

Meanwhile, two other European Style call warrants were issued over ordinary shares of JCY International Berhad. The first warrant has an exercise ratio of 1.5 and tenure of eight months, while the second warrant has an exercise ratio of two and tenure of 12 months.

CIMB Research currently has a ‘trading buy’ call on JCY International on the expectation of continued supply constraints and elevated margins following last year’s Thai floods, which affected a number its competitors.

The bank has also issued six other warrants of the same nature over the ordinary shares of Affin Holdings Berhad, Malaysia Building Society Berhad, Rimbunan Sawit Berhad and Tenaga Nasional Berhad.

The call warrants over the ordinary shares of Affin Holdings Berhad and Malaysia Building Society Berhad have tenures of one year with exercise ratios of three each. The remaining call warrants are over the ordinary shares of Boustead Holdings and Tenaga Nasional with exercise ratios of five each, while Rimbunan Sawit has an exercise ratio of two. These call warrants also expire on March 29, 2013.

All call warrants were listed on Bursa Malaysia on April 5, 2012, with an issue size of 50 million each and priced at 15 sen each. – Bernama


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