Maybank Investment issues 4 new call wattants, 4 new put warrants

Maybank Investment issues 4 new call wattants, 4 new put warrants
Business & Markets 2013
Written by Bernama
Tuesday, 10 September 2013 12:20

KUALA LUMPUR (Sept 10): Maybank Investment Bank Bhd (Maybank-IB) is issuing four new European style cash-settled call and four new put warrants (SW) over the ordinary shares of KOSSAN RUBBER INDUSTRIES BHD [], PETRONAS DAGANGAN BHD [] (Petdag), PETRONAS GAS BHD [] (Petgas) and Supermax Corp Bhd (Supermax).

The warrants will be listed on September 11, with an issue size of 100 million each, the investment bank said in a statement today.

“The oil and gas sector has frequently been a topic of discussion among many investors and the current selection of underlying counters reflects this long-standing interest.

“Recent events in the Middle East will potentially cause oil prices to rise even higher. The underlying counters in this tranche are sensitive to oil price fluctuations.

"Therefore, Maybank-IB is now offering both call and put warrants to investors who have a directional view on these underlying companies," it added.

The call warrants offer investors with a bullish view with the opportunity to participate on the upside of the underlying shares for a fraction of the price, while the put warrants offer investors with the opportunity to gain should the underlying price falls.

Maybank-IB said the Petdag SW, Kossan SW, Supermax SW and Petgas SW had a gearing of 14.78 times, 5.79 times, 7.43 times and 6.45 times, respectively, and all eight SWs have a tenure of about 12 months.

Petdag, which markets petroleum products and operates service stations locally, recently announced a 15 per cent rise in net profit for the second quarter due to continuous marketing and promotions as well as cost optimisation efforts.

As for Petgas, the company has a bright prospect on the back of the commencement of its liquefied natural gas (LNG) regasification terminal business in Melaka, Malaysia’s first LNG regasification terminal.

Maybank-IB has maintained a 'Hold' call on Petgas as at Aug 23, 2013, with a target price of RM20.20.

Meanwhile, Kossan, a manufacturer of industrial rubber and disposable latex products, has been in the process of streamlining its manufacturing lines and increasing production capacity with the completion of three new plants.

It also aims to become a market leader in the manufacturing of nitrile gloves.

Maybank-IB has maintained a 'Buy' call on Kossan as at Aug 27, 2013, with a target price of RM7.12.

Supermax, which manufactures, sells and exports high-quality medical gloves, posted a 35.4 per cent rise year-on-year in revenue for the first-half year, fuelled by stronger volume arising from the increase in the capacity of its Klang factory to 1.43 billion from 1.12 billion gloves.