IPO Sona starts trading, warrant soars 240%, share falls 7%

IPO Sona starts trading, warrant soars 240%, share falls 7%
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 30 July 2013 10:12

KUALA LUMPUR (July 30): Sona Petroleum Bhd warrants soared as much as 240% while its shares fell 7%. The special purpose acquisition company, is listed on the Main Market of Bursa Malaysia today.

At 9.56am, Sona warrants changed hands at 21.5 sen with some 329 million shares done after rising as much as 18 sen to 25.5 sen earlier.

Earlier at 9.55am, Sona shares were traded at 40.5 sen with some 165 million shares done after falling as much as three sen to 39.5 sen.

Sona warrants and shares were the most-active entities across Bursa Malaysia.

Sona’s initial public offering (IPO) involved the sale of 1.1 billion new shares with an equal number of free-detachable warrants.

Under the IPO, one warrant was attached to one share. The combined entity was priced at 50 sen each.

The shares and warrants have reference prices of 42.5 sen and 7.5 sen respectively.

A dealer said investors have bought Sona warrants today as they are "cheaper" than the company’s shares.

The dealer said a one sen increase above the warrants’ reference price of 7.5 sen translates into a larger profit quantum in percentage terms compared to a one sen rise above the shares IPO price of 42.5 sen.

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Stock: [AAX]: AIRASIA X BERHAD
Jul 10, 2013 01:30 PM | Report Abuse

they are selling the private placement shares of 580 million !!!
i hav told you ppl many time ipo attached with private placement dont touch !!!
dont believe you see sona ipo will b worst than this bcos they got to sell 900 million private shares,after all just issue only mah .

my last warning here DO NOT apply sona, retail portion sure under subscribed,they will make it over subscribed on institute portion, YOU ONLY BUY WHEN after listing, bcos you dont need to hold the mother(likely open 30 sen) you buy warrant when open may be 8 sen.....