Maybank Investment Bank Berhad (Maybank IB) is listing eight new European style cash-settled structured warrants over ordinary shares of Airasia Berhad (AIRASIA), Gas Malaysia Berhad (GASMSIA), Malaysian Airline System Berhad (MAS), Media Chinese International Ltd (MEDIAC) and SapuraKencana Petroleum Berhad (SKPETRO) on Bursa Malaysia Securities Berhad with an issue size of RM100 million each. These call warrants are priced at 15 cents and will have a tenure of 12 months. GASMSIA, for which we are listing 4 warrants, will have tenures of 8, 10, 12 and 15 months.
We selected AIRASIA and MAS because they will be the beneficiary of lower oil prices. AIRASIA and MAS’ warrants have a gearing of 4.80 times and 3.63 times and an exercise ratio of 5 and 2, respectively. As a result of SKPETRO’s merger, it is now the country’s largest oil & gas service provider by market value. SKPETRO’s warrant has a gearing of 4.87 times with an exercise ratio of 3 warrants for every 1 share.
GASMSIA is the country’s sole supplier of natural gas to the non-power sector. Maybank IB is listing four warrants on GASMSIA with an exercise ratio of 3 warrants to every 1 share and a variety of exercise prices at RM2.42, RM2.67, RM2.92 and RM3.15. An in-the-money call warrant, where the underlying share price is higher than the exercise price, is more expensive than an out-of-the-money warrant, where the underlying share price is below the exercise price. However, a warrant that is out-of-the-money has faster movement, should the underlying share price exceed the exercise price. MEDIAC is a leading Chinese newspaper publisher in Malaysia and their warrant has a gearing of 3.87 times and exercise ratio of 2 warrants 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.