Maybank Investment Bank Berhad (Maybank IB) is issuing eight new European style cash-settled structured warrants over ordinary shares of Felda Global Ventures Holdings Berhad (FGV), Genting Plantations Berhad (GENP), Kuala Lumpur Kepong Berhad (KLK), Kulim (Malaysia) Berhad (KULIM) and QL Resources Berhad (QL). The warrants will have tenure of 12 months each, with the exception of FGV, which has a tenure of 8, 10, 12 and 15 months. The warrants will be listed on 5 July 2012 with an issue size of RM100 million each.
The focus of this batch of call warrants will be on the plantation sector. Plantation companies are set to gain on higher Crude Palm Oil prices, due to an overall slower output growth and further downgrades in the soybean crops. GENP, KLK and KULIM warrants are priced at 15 cents with an exercise ratio of 10, 20 and 4 for every 1 underlying share, respectively. They also have a gearing of 6.00, 7.41 and 7.50 times. The listing of FGV is this year’s largest Asian IPO and the second largest, globally, after Facebook Inc. It is also the largest IPO in Malaysia since Petronas Chemicals Group Berhad in November 2010. FGV warrants are priced at 15 cents each with an exercise ratio of 6 warrants for every 1 underlying share respectively, and with a gearing of 5.06 times.
QL’s warrant is priced at 15 cents, with a gearing of 6.84 times. The warrant has an exercise ratio of 3 warrants for each underlying 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.