Kuala Lumpur, 18 November 2014 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing eight new European style cash settled call and put warrants over ordinary shares of KNM Group Berhad (“KNM”), Perdana Petroleum Berhad(“PERDANA”), SapuraKencana Petroleum Berhad (“SKPETRO”) and UMW Oil and Gas Corporation Berhad (“UMWOG”). The Structured Warrants will be listed on Wednesday, 19 November 2014 with an issue size of 100 million each.
Various headwinds affecting the Oil and Gas sector, exacerbated by OPEC's unwillingness to curb excess supply, has caused a steep fall in oil prices globally. Consequently, the Oil and Gas sector in Malaysia saw a de-rating over the previous month especially companies that are involved in the exploration sector. As such, Maybank IB will be issuing both Call and Put warrants on KNM, PERDANA, SKPETRO, and UMWOG. Investors with a bullish view may buy the call warrants to benefit from a reversal in share prices whereas investors with a bearish view may buy the put warrants to benefit from continued underperformance in the sector.
The call and put warrants have the following gearings, KNM-CT (3.52x), KNM-HC (7.75x), PERDANA-CG (4.84x), PERDANA-HA (5.17x), SKPETRO-C7 (5.37x), SKPETROHB (6.98x), UMWOG-CR (5.37x) and UMWOG-HA (5.37x). 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.