Kuala Lumpur, 29 October 2014 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing eight new European style cash-settled call warrants (“CW”) over ordinary shares of Bumi Armada Berhad (“ARMADA”), Dayang Enterprise Holdings Berhad (“DAYANG”), Dialog Group Berhad (“DIALOG”), Gas Malaysia Berhad (“GASMSIA”), Perdana Petroleum Berhad (“PERDANA”), Perisai Petroleum Teknologi Berhad (“PERISAI”), SapuraKencana Petroleum Berhad (“SKPETRO”) and UMW Oil & Gas Corporation Berhad (“UMWOG”). The warrants will be listed on Thursday, 30 October 2014 with an issue size of 100 million each.
This tranche focuses on the oil and gas counters listed on Bursa Malaysia. All counters except for GASMSIA have underperformed FBM KLCI in September and October. As such, share prices have fallen to more attractive levels. Crude oil price also fell in September and October. This presents sophisticated investors who remain bullish on the oil and gas sector an opportunity to gain exposure to the sector at more attractive levels.
Maybank IB Research has a BUY call on PERDANA with a TP of RM2.55 for the following reasons: (i) growth stocks with visible contracts supported by solid management team (ii) youngest fleet among the industry (iii) exposure to brownfield that will insulate it from the volatility and CAPEX cuts; and (iv) recent price weakness as an opportunity to accumulate.
The call warrants have the following gearings, ARMADA-CW (3.13x), DAYANG-CP (3.87x), DIALOG-C1 (3.49x), GASMSIA-CQ (7.78x), PERDANA-CC (2.77x), PERISAI-CH (3.70x), SKPETRO-C5 (3.79x) and UMWOG-CQ (4.31x). The tenure of all eight CWs is approximately 12 months.
The terms and conditions of the above call warrants are stated in their respective term sheets and investors should read the term sheets together with the Base Prospectus dated 2 October 2014.