Kuala Lumpur, 19 August 2014 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing eight new European style cash-settled call warrants (“CW”) over ordinary shares of Coastal Contracts Berhad (“COASTAL”), Dayang Enterprise Holdings Berhad (“DAYANG”), Dialog Group Berhad (“DIALOG”), Hock Seng Lee Berhad (“HSL”), KNM Group Berhad (“KNM”), Muhibbah Engineering (M) Berhad (“MUHIBAH”), Perdana Petroleum Berhad (“PERDANA”) and SapuraKencana Petroleum Berhad (“SKPETRO”). The warrants will be listed on Tuesday, 19 August 2014 with an issue size of 100 million each.
This tranche features the oil & gas segment in Malaysia. Investment by PETRONAS in RAPID is expected to stimulate the Malaysian oil & gas sector in 2014. RAPID and the three entrypoint projects under oil & gas may create surprises on the upside through contract awards. With a wide array of underlying companies with exposure to the oil & gas sector, this tranche offers sophisticated investors who have a bullish view to participate in the upside of their selected counters. Maybank Kim Eng Research has maintained its BUY call on KNM with a target price of RM1.50 supported by KNM’s status as one of the selected subcontractors for package 2 of RAPID. Maybank Kim Eng Research has also maintained its BUY call on PERDANA with a target price of RM2.55 on the back of visible business model, young fleet and longterm contracts.
The call warrants have the following gearings, COASTAL-CG (4.43x), DAYANG-CN (4.14x), DIALOG-CZ (4.07x), HSL-CC (4.18x), KNM-CP (3.57x), MUHIBAH-CC (3.61x), PERDANA-CE (3.12x) and SKPETRO-C1 (4.10x). 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 2013, the First Supplementary Base Prospectus dated 15 January 2014 and the Second Supplementary Base Prospectus dated 29 April 2014.