Maybank Investment Bank Issues 8 New Call Warrants
Kuala Lumpur, 18 July 2018 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing eight new European style cash-settled call warrants (“CW”) over ordinary shares of Nestlé (Malaysia) Berhad (“NESTLE”), AEON Co. (M) Bhd (“AEON”), Padini Holdings Berhad (“PADINI”), Dutch Lady Milk Industries Berhad (“DLADY”), Felda Global Ventures Holdings Berhad (“FGV”), Sime Darby Plantation Berhad (“SIMEPLT”), Top Glove Corporation Bhd (“TOPGLOV”) and Genting Berhad (“GENTING”). The call warrants will be listed on Thursday, 19 July 2018 with an issue size of 100 million each.
This tranche is being offered in response to recent activity in the consumer sector, arising from various macro events affecting Malaysia’s economy. Maybank Investment Bank Research expects a boost in consumer spending, as a response to the zerorisation of the Goods & Services Tax and stabilization of fuel prices via government subsidies. Furthermore, Budget 2018 has already incorporated measures to stimulate consumer spending, namely the “Cost of Living Aid” initiative, Hari Raya bonuses for civil servants and pensioners as well as cuts in personal income tax.
On the economic front, Malaysia’s underlying economic fundamentals remain favourable, with sustained trade and current account surpluses backed by rising crude oil prices. S&P recently reaffirmed Malaysia’s “A-” sovereign credit rating with a “Stable” rating outlook. Sophisticated investors interested in participating in the consumer sector may consider investing via the warrants issued in this tranche.
The call warrants have the following gearings, NESTLE-CD (9.76x), AEON-CN (4.05x), PADINI-CU (4.61x), DLADY-CB (8.93x), FGV-C54 (3.49x), SIMEPLT-CG (5.00x), TOPGLOV-C37 (4.74x) and GENTING-C53 (7.46x). The tenure for the eight call warrants listed above is approximately 8 months.
The terms and conditions of the above call warrants are stated in their respective term sheets. Investors should read these term sheets together with the Base Prospectus dated 4 October 2017, First Supplementary Base Prospectus dated 20 November 2017, Second Supplementary Base Prospectus dated 24 January 2018, Third Supplementary Base Prospectus dated 8 May 2018 and Fourth Supplementary Base Prospectus dated 18 July 2018.