KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) is issuing three new European style cash-settled call warrants (CW) over the ordinary shares of Cahya Mata Sarawak Bhd (CMS), Karex Bhd and Malaysia Airports Holdings Bhd (Airport).
Maybank IB said the warrants will be listed yesterday with an issue size of 100 million each and this tranche focused on unique counters listed on Bursa Malaysia, it said in statement.
“Karex and Airport are the only condom manufacturer and airport operator, respectively, listed in Bursa Malaysia, while on the opther hand, CMS is the closest proxy to the growth potential of Sarawak’s economy arising from the significant business interest in the state and Sarawak Corridor of Renewable Energy (SCORE),” it said.
All three underlying companies in this tranche had performed well in the past 12 months and as such, this tranche offered sophisticated investors the opportunity to gain exposure to the underlying stocks’ unique businesses, it added.
CMS, with its significant business interests in Sarawak, is expected to benefit significantly from the Score. Maybank IB said with the proposed two-for-one share split and one-for-two bonus issue, trading liquidity and affordability of CMS shares are expected to improve.
Meanwhile, Maybank IB Research has a ‘buy’ call on CMS with a target price of RM10.50.
The structured warrants listed in this tranche are CMSB-CG, Karex-CB and Airport-CK and they have gearings of 4.36 times, 3.54 times and Airport 5.33 times, respectively.
“The tenure of all three call warrants is about 12 months,” it said. — Bernama