Maybank Investment Bank Berhad (Maybank IB) is issuing eight new European style cash-settled structured warrants over ordinary shares of Hartalega Holdings Berhad (HARTA), IHH Healthcare Berhad (IHH), Malaysian Bulk Carriers Berhad (MAYBULK), Parkson Holdings Berhad (PARKSON), Supermax Corporation Berhad (SUPERMX) and UMW Holdings Berhad (UMW). The warrants will be listed on 1 August 2012 with an issue size of 100 million each, with the exception of one IHH warrant, at an issue size of 150 million. These call warrants are priced at 15 cents with tenure ranging from 8 to 12 months.
The focus of this batch of call warrants will be on the newly listed healthcare stock, IHH. IHH will be one of the largest listed private healthcare providers in the world upon listing. With operations mainly in Malaysia and Singapore, it targets to expand to new markets such as Central & Eastern Europe, Middle East and North Africa. This growth strategy is expected to sustain its earnings momentum. IHH warrants have a gearing of 4.75, 6.33 and 6.33 times and an exercise ratio of 4, 3 and 3 for every 1 share, respectively.
We have selected HARTA and SUPERMX as they are the beneficiary of increased global demand for nitrile gloves. HARTA and SUPERMX warrants have a gearing of 5.93 and 4.82 times. These call warrants have an exercise ratio of 5 and 3 warrants for every 1 share.
We also have a warrant on MAYBULK with a gearing of 3.78 times and an exercise ratio of 3 for every 1 share
We have selected PARKSON as it is the beneficiary of China’s fiscal growth and rapid expansion plans in Southeast Asia. This warrant has a gearing of 5.28 times and an exercise ratio of 6 for every 1 share.
UMW’s recent first quarter 2012 results were better than expected due to higher contributions from its oil and gas division. Despite the impact of tighter hire purchase guidelines, its auto division reported stronger revenue year-on-year in the first quarter of 2012. UMW has a gearing of 12.84 and an exercise ratio of 5 for every 1 share.
The terms and conditions of the above call warrants are stated in their respective term sheets and should be read in conjunction with the Base Prospectus dated 19 September 2011 and First Supplementary Base Prospectus dated 19 April 2012.