Kuala Lumpur, 19 October 2013 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) issued four new European style cash-settled call warrants (“CW”) over foreign underlying shares. The first two have Class A common stock of Facebook, Inc (“FB”) and Google Inc (“GOOGLE”) as underlying. The other two are over common stock of Apple Inc. (“APPLE”) and Yahoo! Inc (“YAHOO”). The warrants were listed on Thursday, 17 October 2013 with an issue size of 100 million each.
Technology has become a necessary part of our lives, thus making the world a smaller place. Investors have wanted exposure to leading global household names like APPLE, FB, GOOGLE and YAHOO. These companies have been working on mobile software and applications to tap into this rich source of revenue. Major personalities have been using technology to reach out to their fan base. Our nation’s leaders are also actively using technological devices such as handheld computers and their applications. With the launch of this tranche of call warrants, traders will have exposure to these companies at a fraction of the stock price.
APPLE recently launched the revised version of the iPhone, the iPhone 5s and 5c.
APPLE sold a record 9 million iPhones on the opening weekend in September. It was also the first time that a new iPhone debuted in China, the world’s largest mobile-phone market. The iPhone is Apple’s most important product, accounting for half of its revenue.
FB is expanding an advertising service aimed at developers of smartphone and tablet apps in the social network’s latest move to boost its fast-growing mobile business. FB currently has 1.15 billion users and more than 1 million advertisers. It was reported in July that mobile ad revenue accounted for 41% of its sales in the second quarter and investors are expecting future growth. Furthermore, FB may be accessible in the Shanghai Free Trade Zone, finally giving the company access to a large source of revenue.
GOOGLE, a leading search engine on the internet is the market leader in online advertising in places such as the United Kingdom. In the first half of 2013, GOOGLE captured £1.8 billion in UK online advertising. The company also launched a new chromebook, designed by Hewlett-Packard. Priced at US$279 and similar to a notebook, the chromebook uses a micro-USB charger, thus making it attractive for consumers who do not enjoy having to lug around a separate power cable.
YAHOO has unveiled new features and a graphics-rich design to its mail website and mobile applications, the latest in their assault to capture market share from GOOGLE. YAHOO, the US’ largest web portal is looking at expanding the mobile business as they foresee an increase in the usage of mobile applications to view online material. YAHOO has spent US$1.1 billion to purchase the blogging platform Tumblr Inc.
The call warrants have the following gearings, APPLE CW (4.16x), FB CW (4.30x), GOOGLE CW (6.31x) and YAHOO CW (4.88x). The tenure of all four CWs above 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.