Kuala Lumpur, 02 October 2013 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing six new European style cash-settled call and two new put warrants (“SW”) over ordinary shares of Kian Joo Can Factory Berhad (“KIANJOO”), Mudajaya Group Berhad (“MUDAJYA”), Perisai Petroleum Teknologi Berhad (“PERISAI”), Pos Malaysia Berhad (“POS”), RHB Capital Berhad (“RHBCAP”) and Tune Ins Holdings Berhad (“TUNEINS”). The warrants will be listed on Thursday, 03 October 2013 with an issue size of 100 million each.
Just like the past two tranches, Maybank Investment Bank is offering both call and put warrants to investors who have a directional view on these underlying companies. The call warrants offer investors with a bullish view the opportunity to participate on the upside of the underlying shares for a fraction of the price while the put warrants offer investors with the opportunity to gain should the underlying price falls.
MUDAJYA has ventured into power supply in India. The company recently reported that sale from its coal fired thermal power plant in Chhattisgarh, India is to begin by the end of the year after it finally secured the coal supply for the first phase of the plant. The second phase is expected to be completed progressively in 2014.
This power plant is expected to contribute about RM80 million annually to MUDAJYA’s bottom line once it is fully operational. PERISAI has been in the news due to the non-extension of their Mobile Offshore Production Unit. However, they have a partnership with Ezra Holdings Ltd and this is expected to enhance the potential of rechartering the pipelay barge to other clients.
RHBCAP is looking at expanding into Indonesia and are looking into buying a share in Bank Mestika. Maybank Investment Bank has maintained a HOLD call on RHBCAP as of 02 September 2013, with a target price of RM7.90. POS, part of the DRB-Hicom Group has been looking to expand its business overseas, especially in but not limited to the Middle East. It is also looking to grow its profitable courier and logistics segments by leveraging on its numerous Pos Laju centres and extract further synergies from Kuala Lumpur Airport Services Sdn Bhd.
This will create an efficient workflow of logistics management services.
TUNEINS has been aggressive in selling their travel policies. In 2012, they sold six million travel policies and aim to raise policy sales by 20% while also launching an online portal called TuneDirect. They are also venturing into Indonesia and Thailand which contribute 17% of their sales in 2013. In the first half of 2013, they sold 3.65 million travel policies. It is reported that they are on track to purchase a large stake in an Indonesian general insurance company.
The call and put warrants have the following gearings, KIANJOO SW (3.54x), MUDAJYA SW (4.43x), PERISAI SW (2.91x), POS SW (5.84x), RHBCAP SW (6.28x) and TUNEINS SW (4.49x). The tenure of all eight SWs 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 02 October 2013.