|
Fitters Boss Up Warrants Stake Again |
 |
 |
 |
|
Written by Editor
|
|
Friday, 03 September 2010 09:16 |
|
The Managing Director and major shareholder of Fitters Diversified Berhad (Fitters) , Dato’ Wong Swee Yee continued to mop up its company warrants (Fitters-WA). He now controls close to half of all warrants outstanding. This is in addition to his 32.9% stake in the ordinary shares of the company. Any additional purchase of shares by Wong will trigger a mandatory offer. This explains why Wong is consolidating his grip in the company via warrants.
|
|
Read more...
|
|
|
KNM-HA - Insurance for Free |
|
|
|
|
Written by Editor
|
|
Wednesday, 01 September 2010 09:07 |
|
KNM Group share price fell sharply this morning after the company announced a 4 for 1 share consolidation exercise. The put warrant on KNM issued by OSK hardly moved.
|
|
Last Updated on Wednesday, 01 September 2010 10:20 |
|
Read more...
|
|
UNISEM-WA Trades Cancelled |
|
|
|
|
Written by Editor
|
|
Monday, 30 August 2010 22:36 |
|
Bursa Malaysia has announced that all trades matched for UNISEM new company warrant, UNISEM-WA, in the afternoon session of 30 August between 2:30pm and 3:23pm were cancelled. The following is a press release from Bursa Malaysia website:
30 Aug 2010
NOTIFICATION: TRADES FOR UNISEM-WA CANCELLED, RESUMED TRADING AT 4.05PM
Trades for UNISEM-WA (5005WA) that were matched from 2:30pm to 3:23pm were cancelled due to an error in keying in the upper limit price, as permitted under the Rules of Bursa Malaysia Securities. The stock was suspended from 3.23pm to 3.55pm to facilitate the recommencement of pre-opening (reserve state) at 3.55pm and trading at 4.05pm. The upper limit price for this stock is RM0.50.
All market participants have been duly notified.
This may be the first time that such an incident happened. Normally, a security can only rise 500% from its reference price on the first day of trading. UNISEM-WA reference price was 10 sen, which is the subscription price of the warrant. Had Unisem warrant came free with a rights issue, probably the reference price would be 0.5 sen as the warrant is out-of-money. Maybe it is about time that Bursa uses a theoretical price for reference price for new warrants. Or else, traders have to bear with this limit up rules which now forces the Exchange to implement drastic measures like this.
Those who bought UNISEM-WA this afternoon at "second limit up" price of 80 sen is now the main beneficiary of the blunder!
For those who punted and made intraday gain on UNISEM-WA, tough luck!
|
|
Last Updated on Monday, 30 August 2010 22:50 |
|
|
Written by Editor
|
|
Monday, 30 August 2010 11:19 |
|
This is the latest indicators including funding rates of CBBCs listed on Bursa Malaysia. The figures are calculated based on last Friday’s closing price.
|
|
Last Updated on Monday, 30 August 2010 11:24 |
|
Read more...
|
|
Why is UNISEM-CA Falling in Big Volume |
|
|
|
|
Written by Editor
|
|
Wednesday, 04 August 2010 09:50 |
|
Today UNISEM-CA is listed on Bursa Malaysia by issuer AmInvestment Bank and the warrant fell significantly from the issue price of 15 sen to about 13 sen at the time of writing on big volume. Why is that so when Unisem share price is moving up?
The answer can be due to the fact that this structured warrant was issued at an issue price that is higher than the current implied price of new Unisem company warrant. UNISEM-WR, the right to subscribe for Unisem new 5 year warrant with the same exercise price of UNISEM-CA, is now trading at about 42 sen. UNISEM-CA, a structured warrant with the same exercise price and expires in March 2011 (tenure about 7 months), should not be worth more than the new unisem company warrant with a five year tenure.
UNISEM-CA has an exercise ratio of 4 to one. This means that you need 4 warrants to entitle to exercise to one share whereas Unisem company warrant exercise ratio is one for one. UNISEM-WR holder need to pay 10 sen to subscribe for new warrant so the implied price for the new warrant is about 52 sen. With the issuance price of 15 sen, UNISEM-CA is equivalent to 60 sen adjusted for exercise ratio. At 13 sen, adjusted price is 52 sen, which is the current implied value of Unisem new warrant.
So, the issuer just needs to buy the warrant rights and sell the structured warrant to make some easy profit. Investors should take this into consideration when trading UNISEM-CA.
|
|
|
|
|
|
|
Page 1 of 4 |
Malaysia Warrants News
