Kuala Lumpur, 15 April 2014 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing three new European style cash-settled call warrants (“CW”) over ordinary shares of Cahya Mata Sarawak Berhad (“CMSB”), Karex Berhad (“KAREX”) and Malaysia Airports Holdings Berhad (“AIRPORT”). The warrants will be listed on Tuesday, 15 April 2014 with an issue size of 100 million each.
This tranche focuses on unique counters listed on Bursa Malaysia. KAREX and AIRPORT are the only condom manufacturer and airport operator listed in Bursa Malaysia respectively. On the other hand, CMSB is the closest proxy to the growth potential of Sarawak’s economy arising from its significant business interest in Sarawak and Sarawak Corridor of Renewable Energy (SCORE). All three underlying companies in this tranche have performed well in the past 12 months. As such, this tranche offers sophisticated investors the opportunity to gain exposure to the underlying stocks’ unique businesses.
CMSB, with its significant business interests in Sarawak is expected to benefit significantly from the SCORE. With the proposed 2-for-1 share split and a 1-for-2 bonus issue, trading liquidity and affordability of CMSB shares is expected to improve. Maybank Research has a BUY call on CMSB with a target price of RM10.50.
The other structured warrants listed in this tranche are KAREX-CB and AIRPORT-CK.
The call warrants have the following gearings, CMSB-CG (4.36x), KAREX-CB (3.54x) and AIRPORT-CK (5.33x). The tenure of all three 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 and the First Supplementary Base Prospectus dated 15 January 2014.