Kuala Lumpur, 10 June 2014 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing six new European style cash-settled call warrants (“CW”) over ordinary shares of Astro Malaysia Holdings Berhad (“ASTRO”), Axiata Group Berhad (“AXIATA”), DiGi.Com Berhad (“DIGI”), IHH Healthcare Berhad (“IHH”), Maxis Berhad (“MAXIS”) and Tenaga Nasional Berhad (“TENAGA”). The warrants will be listed on Tuesday, 10 June 2014 with an issue size of 100 million each.
This tranche offers sophisticated investors an alternative avenue to gain exposure to telecommunication, power, healthcare and media sectors. The FBM KLCI has rallied from its one-year low of approximately 1,660 in August 2013 to more than 1,850. With the FBM KLCI trading near its 52-week high, sophisticated investors may choose to switch over into the defensive sector.
AXIATA, DIGI and MAXIS, being the top three players in the Malaysian telecommunication sector, may see key developments in the second half of 2014. Higher adoption of smart devices as well as wider 3G and 4G service coverage are expected to drive growth. TENAGA, being the largest electricity utility company in Malaysia, commands a strong monopoly of the electricity market. With the electricity tariff increase effective from January 2014, TENAGA’s earnings are expected to improve in FY2014. Maybank Investment Bank Research has a buy call on TENAGA with a target price of RM14.00. The other underlying companies in this tranche are IHH and ASTRO, representing the healthcare and media sectors.
The call warrants have the following gearings, ASTRO-CQ (5.77x), AXIATACZ(5.74x), DIGI-CY (6.11x), IHH-CT (5.56x), MAXIS-CM (7.34x) and TENAGA-C11 (5.40x). The tenure of all six 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.