Kuala Lumpur, 28 January 2016 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing thirteen new European style cash settled call warrants over ordinary shares of AirAsia Berhad (“AIRASIA”), Cathay Pacific Airways Limited (“CATHAY CW”), Hartalega Holdings Berhad (“HARTA”), Jaya Tiasa Holdings Berhad (“JTIASA”), Karex Berhad (“KAREX”), Kossan Rubber Industries Berhad (“KOSSAN”), Supermax Corporation Berhad (“SUPERMX”), and Top Glove Corporation Berhad (“TOPGLOV”), as well as one call and two put warrants over the FTSE Bursa Malaysia KLCI (“FBMKLCI”) (“Structured Warrants”). The Structured Warrants were listed this morning with an issue size of 100 million each.
Trading volume of corporates in the rubber products sector has gone up due to strong
earnings driven by strong US Dollar, lower raw material prices, and resilient global
demand. The sector will continue to benefit from a strengthening US dollar as sales are
denominated in the currency and lower production cost due to the decline in most global
commodity prices. Hence, for this issuance, the focus is on gloves and condom
With oil prices easing below USD30 per barrel, airline operators are expected to be one of
the key beneficiaries. Maybank IB Research forecasts that the profit margin for Asian airlines will grow 24.7% in 2016 driven by accelerated traffic, margin expansion, decline in operating costs due to low fuel prices, and increasing aircraft utilisation rates. Our local budget airline, AIRASIA and Hong Kong national carrier, CATHAY are featured in this tranche.
This issuance targets sophisticated investors who want leveraged exposure to the
underlyings. In addition, investors who have a directional view on the broader Malaysian
market in 2016 can also opt to trade the call or put index warrants offered.
The structured warrants have the following gearings, AIRASIAC30 (4.63x), CATHAY-C1 (6.0x), HARTA-CS (5.04x), HARTA-CT (4.48x), JTIASA-CF (2.83x), KAREX-CN (5.06x), KAREX-CO (3.79x), KOSSAN-CM (4.14x), KOSSAN-CN (4.83x), SUPERMX-C12 (3.82x), SUPERMX-C13 (4.59x), TOPGLOV-C1 (3.86x), TOPGLOV-C2 (4.21x), FBMKLCI-C42 (13.69x), FBMKLCI-H45 (12.17x) and FBMKLCI-H47 (13.69x). The tenure of all the sixteen Structured Warrants is approximately 12 months.
The terms and conditions of the above Structured Warrants are stated in their respective
term sheets and investors should read the term sheets together with the Base Prospectus
dated 2 October 2015 and the First Supplementary Base Prospectus dated 27 January 2016.