KUALA LUMPUR: AmBank (M) Bhd is issuing four new European style cash-settled structured warrants to meet investors’ demand for trading opportunities and alternative investments for the current market.
It would issue two call warrants for Gas Malaysia Bhd, with different exercise prices, and one each for China Stationery Ltd (CSL) and Facebook Inc.
“The structured warrants will be issued today with an issue size of up to 100 million each and tenures of about 12 months,” it said in a statement.
AmBank’s structured warrants will be listed via the market making method.
AmInvestment Bank Bhd’s director/head, equity derivatives, Ng Ee Fang said Gas Malaysia initial public offering was warmly received by the market as evident by its double-digit gains upon listing on June 11.
“The stock posted a gain of 22 sen or 10% to close at RM2.42 on its first day of listing,” she said, adding that market appetite remained resilient among domestic investors.
AmBank’s call warrant on CSL will be the first structured warrant over the underlying company to be issued and traded on Bursa Malaysia as AmBank sought to introduce new trading and investment alternatives to the market.
The offer is aimed at sophisticated traders who want to trade on the direction and volatility of Gas Malaysia, CSL and Facebook, as well as, gain leverage exposure to the underlying shares.
The new call warrants have gearings ranging from 3.29 to 9.78, the statement added.