Kuala Lumpur, 5 November 2015 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing sixteen new European style cash settled call warrants over ordinary shares of Bumi Armada Berhad (“ARMADA”), Dayang Enterprise Holdings Berhad (“DAYANG”), Dialog Group Berhad (“DIALOG”), Petronas Chemicals Group Berhad (“PCHEM”), SapuraKencana Petroleum Berhad (“SKPETRO”) and UMW Oil & Gas Corporation Berhad (“UMWOG”). The Structured Warrants will be listed on Friday, 6 November 2015 with an issue size of 100 million each.
This issuance consists of a range of call warrants targeting sophisticated investors who are looking to profit from the volatility of the oil and gas sector. The U.S. Federal Reserve's decision to hold off raising interest rates is continuing the ongoing market uncertainty which impacts the global currency market. This is a contributing factor that could drive up the volatility of share prices in the oil and gas sector. In a recent meeting of the Organization of the Petroleum Exporting Countries (OPEC), there was a proposal made by Venezuela to reduce oil production to boost price but it did not go through. The industry will be looking to the next OPEC meeting, expected to be on the 4th December 2015, for some guidance.
The call warrants have the following gearings, ARMADA-C8 (2.59x), ARMADA-C9 (2.59X), ARMADA-C10 (3.23x), DAYANG-CT (2.82x), DAYANG-CU (3.22x), DAYANG-CV (3.22x), DIALOG-C6 (2.68x), DIALOG-C7 (3.07x), DIALOG-C8 (3.07x), PCHEM-C2 (4.27x), PCHEM-C3 (4.27x), SKPETROC21 (3.52x), SKPETROC22 (3.52x), SKPETROC23 (3.52x), UMWOG-C1 (2.78x) and UMWOG-C2 (2.78x). The tenure of all sixteen Structured Warrants is approximately 12 months.
The terms and conditions of the above Structured Warrants are stated in their respective term sheets and investors should read the term sheets together with the Base Prospectus dated 2 October 2015.