Kuala Lumpur, 3 December 2014 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing eight new European style cash settled call and put warrants over ordinary shares of Eastern & Oriental Berhad (“E&O”), MPHB Capital Berhad (“MPHBCAP”), SP Setia Berhad (“SPSETIA”) and UOA Development Berhad (“UOADEV”). The Structured Warrants will be listed on Thursday, 4 December 2014 with an issue size of 100 million each.
Under Budget Malaysia 2015, up to 143,000 units of new affordable homes are expected to be built through 1Malaysia People's Housing Programme (PR1MA), National Housing Department (JPN) and Syarikat Perumahan Negara Berhad (SPNB). In addition, the Youth Housing Scheme offers a funding limit of RM500,000 for married youths with household incomes not exceeding RM10,000. While these initiatives may benefit the property sector, the implementation of GST, subsidy rationalization and the possible interest rate hike may cushion the stimulative effect of the initiatives. As such, Maybank IB is offering this tranche of structured warrants to investors with bullish or bearish view on the property sector. Investors with a bullish view of the property sector may buy the call warrants to capitalize on a share price rally whereas investors with a bearish view of the property sector may buy the put warrants to benefit from market softening in 2015.
The call and put warrants have the following gearings, E&O-CW (5.62x), E&O-HB (6.56x), MPHBCAP-CF (6.21x), MPHBCAP-HA (10.36x), SPSETIA-CP (5.62x), SPETIAHA (7.31x), UOADEV-CR (4.95x) and UOADEV-HA (7.10x). The tenure of all eight 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 2014 and the First Supplementary Base Prospectus dated 12 November 2014.