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Global Derivatives Articles

AEM-WA High Valuation Due to Traders Buying Ahead of Growth

AE Multi Holdings Berhad (AEM) saw the entry of Apex Equity Holdings Berhad Executive Director Lim Teck Seng emerging as substantial shareholder of the company in August 2017.  Lim acquired 18.46 million shares representing 6.2% of the company.  Lim was subsequently appointed to the board of directors on 21 September.  The share price of AEM had remained in a tight range between 16 to 19 sen in the last few months closing at 16.5 sen on 15 November 2017 while the company warrant AEM-WA closed at 7.5 sen.

Disposal of DGSB stake Failed to Excite OMESTI-WB

The share price of Omesti Berhad failed to react significantly to the announcement by the company that it was disposing 290 million shares, representing 21.39% stake, in its listed subsidiary Diversified Gateway Solutions Berhad (DGSB) to Insas Technology Berhad (ITB) and its directors Dato‟ Dr Tan Seng Chuan and Dato’ Wong Gian Kui.  The disposal was for a cash consideration of RM13.78 million or 4.75 sen per share.  While the share price of DGSB surged to as high as 10 sen, more than double the disposal price, Omesti share and warrant price remained lackluster ending trading on 8 November at 48 sen and 6 sen respectively.

 

Lack of catalyst to buy Asian Pac warrants

When the rights issue of Asian Pac Holdings Berhad was undersubscribed by a considerable margin, the major shareholder of the company, low-profile businessman Mah Sau Cheong, which held some 18% of the company consolidated his control of Asian Pac by taking up most of the excess rights application.  The rights issue of RM99.26 million nominal value of 5-year 3% Irredeemable Convertible Unsecured Loan Stocks (ICULS) was priced at the subscription price of RM1.00 per share.  With a conversion ratio of 1 ICULS for 5 shares, the rights issue pricing was not too attractive for shareholders as ICULS normally trade at discount to conversion.  However, shareholders who subscribed for the rights issue would not lose money since the combined value of the 2 warrants that come with the subscription of 1 ICULS exceeds the RM1 subscription price.  As at 1 November 2017, the share price of Asian Pac was last traded at 18 sen while the ICULS (ASIAPAC-LC) and warrant (ASIAPAC-WB) closed at 93 sen and 8.5 sen respectively.

 

SUNWAY-WB : Warrant with Step-Down Exercise Pricing Mechanism

SUNWAY-WB, the new company warrant of Sunway Berhad started trading on Bursa Malaysia on 6 October.  It was a bonus warrant issue to shareholders.  As the warrant is out of money, SUNWAY-WB debut refence price was 0.5 sen and it immediately went up to the maximum first day limit-up price of 30.5 sen.  SUNWAY-WB has since then fluctuated between 60 sen to 73.5 sen.  At the close of trading on 25 October, SUNWAY-WB was last traded at 66.5 sen while the mother share closed at RM1.68.

SCH-WA : A Tool to Ride on New Shareholders’ Value

The share price of SCH Group Berhad hit a one year high of 27.5 sen in early April this year not long after the emergence of a new group of substantial shareholders after co-founders and former directors Wong Sin Chin and Yeen Yoon Hin ceased to be substantial shareholders of the company.  The new group, led by low-profile businessman Tan Sri Dato' Sri Koh Kin Lip and one of the founding brothers of Cocoaland Holdings Berhad, Liew Fook Meng, collectively own more than 16% of the company according to disclosures to Bursa Malaysia.  However, the share price failed to sustain the initial momentum and corrected substantially to as low as 18 sen in August before rising recently to close at 23 sen on 17 October while the company warrant SCH-WA closed at 13.5 sen.

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Analysis

Warrant Ranking by Premium (7 Aug 2016)

Warrant Ranking 7 Aug 2016 by Premium

 

 

 

 

 

 

 

 

 

MALAYSIA LOAN STOCK ANALYSIS 27 MAY 2015

The following is a list of loan stock listed on Bursa Malaysia as at (date).

Malaysia Loan Stock Analysis 270515

Change in Shareholdings (1/5/2015 - 31/5/2015)

The following is a list of change in shareholdings as at (date).

May 2015 (1 May 2015 - 31 May 2015)

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