Hot Stock Gabungan AQRS warrant jumps 50% on maiden trade

Hot Stock Gabungan AQRS warrant jumps 50% on maiden trade
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 25 July 2013 14:03

KUALA LUMPUR (July 25): Gabungan AQRS Bhd warrants rose as much as 50% to become the most-active entity across the exchange at lunch break. This came on the maiden trade of the builder and property developer's free warrants on the Main Market of Bursa Malaysia today.

At 12.30pm, the warrants under Gabungan AQRS’ bonus issue, settled at 33 sen with some 36 million units done. The warrants had earlier risen as much as 16 sen to 48 sen.

This compares with Gabungan AQRS shares which settled flat at RM1.62 during lunch break.

The firm's bonus issue involved 159.98 million warrants on the basis of nine warrants for every 20 existing shares held.

Gabungan AQRS Bhd has fixed the exercise price of the warrants at RM1.30 each.

RHB Research Institute Sdn Bhd analyst Joshua Ng had last Friday (July 19) downgraded Gabungan AQRS shares to "buy" from "sell" and cut the stock’s target price (TP) to RM1.15 from RM1.45.

Ng wrote in a note that upside for Gabungan AQRS share price “is exhausted” after a 50% rise since RHB initiated coverage on the stock in December 2012.

"We cut our TP to RM1.15 (from RM1.45) based on 10 times FY14 EPS of 11.5 sen (having reflected the dilution from the just-completed issue of free warrants with an exercise price of RM1.30 on a nine-for-20 basis), in line with our one-year forward target P/E of 10-16 times for the CONSTRUCTION [] sector," Ng said.