MELEWAR-WB : Mother Share Safer Bet as Out-Of-Money Warrant Cornered

Written by Editor

The new warrant of Melewar Industrial Group Berhad (Melewar) made its debut at Bursa Malaysia on 24 August 2018.  This warrant was issued as a sweetener to subscribers of Melewar’s recently completed one for one rights issue.  Subscribers of two rights shares at 20 sen per share would receive one free warrant.  However, the rights issue was undersubscribed with subscription rate of just under 60% as the rights issue price was not set at an attractive price even with the free warrant.  The share price has now fallen substantially below the rights issue price and was last traded at 15.5 sen at the close of trading on 4 September 2018.  MELEWAR-WB, which rose to as high as 11 sen on the first day of trade, ended trading at 7 sen on 4 September.

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