Maybank IB issues 8 new warrants

PETALING JAYA: Maybank Investment Bank Bhd (Maybank IB) has issued eight new European style cash settled call warrants over ordinary shares of Hartalega Holdings Bhd (HARTA), Hume Industries Bhd (HUMEIND), Karex Bhd, Kossan Rubber Industries Bhd, Press Metal Bhd (PMETAL), Supermax Corp Bhd (SUPERMX), Top Glove Corp Bhd (TOPGLOV) and Unisem (M) Bhd.
The structured warrants were listed last Friday with an issue size of 100 million each.
"This tranche features call warrants over export-driven industries. With the MYR currency falling to more than RM3.550 per US dollar as at Feb 6, 2015 in conjunction with the sharp decline in global oil price, export-driven industries are expected to gain from foreign exchange gains and more competitively priced products.
"MYR-priced products will be more competitively priced compared to its peers which may spur demand for Malaysian goods," Maybank IB said in a statement last Friday.
It said that exporters with US dollar denominated sales will enjoy a higher profit margin from foreign exchange translation gains from their foreign currency-denominated sales.
"Sophisticated investors who wish to capitalise on the weak MYR and improvement in global demand may buy these call warrants to benefit from any potential upside," it added.
The call warrants have the following gearings, HARTA-CO (6.29x), HUMEIND-CA (3.14x), KAREX-CF (4.34x), KOSSAN-CG (4.29x), PMETAL-CH (3.59x), SUPERMX-CZ (4.89x), TOPGLOV-CT (5.50x) and UNISEM-CF (3.37x).
The tenure of all eight structured warrants is about 12 months.