10  September 2013
Maybank Investment Bank Issues 4 New Call Warrants And 4 New Put Warrants

Kuala Lumpur, 10 September 2013 – Maybank Investment Bank Berhad (“Maybank Investment Bank”) is issuing four new European style cash-settled call and four new put warrants (“SW”) over ordinary shares of Kossan Rubber Industries Berhad (“KOSSAN”), Petronas Dagangan Berhad (“PETDAG”), Petronas Gas Berhad (“PETGAS”) and Supermax Corporation Berhad (“SUPERMX”). The warrants will be listed on Wednesday, 11 September 2013 with an issue size of 100 million each.

“The oil and gas sector has frequently been a topic of discussion for many investors and the current selection of underlying counters reflects this long standing interest. Recent events in the Middle East will potentially cause oil prices to rise even higher. The underlying counters in this tranche are sensitive to oil price fluctuations. Therefore, Maybank Investment Bank is now 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”.

KOSSAN manufactures and sells rubber products. Through its subsidiaries, the Company also manufactures and trades latex examination gloves as well as fabricates and installs machinery. KOSSAN has been in the process of streamlining its manufacturing lines as well as increasing production capacity with the completion of three new plants. It also aims to become the market leader in manufacturing nitrile gloves. Maybank Investment Bank has maintained a buy call on KOSSAN as of 27 August 2013, with a target price of RM7.12.

SUPERMAX is an investment holding company whose subsidiaries manufacture, sell and export various types of latex gloves around the world. SUPERMAX recently announced that their first half revenue rose by 35.4% year-on-year fuelled by stronger volume arising from the increase in the capacity of its Klang factory from 1.12 billion to 1.43 billion gloves. Furthermore, their production lines have been refurbished and manufacture solely nitrile gloves.

PETDAG markets petroleum products and operates service stations domestically. The company also has operations in aviation fuelling at the Kuala Lumpur International Airport and bunkering facilities at Westport. It also markets and distributes lubricants. The company recently announced a 15% rise in net profit for the second quarter. This was due to their continuous marketing and promotions as well as cost optimisation efforts. They have an extensive station network with differentiated offerings and regular customer engagements.

PETGAS processes and separates natural gas into its components from the gas field offshore Terengganu. The company stores, transports and distributes these components as well as trades utilities to petrochemical plants. PETGAS’ prospects have been viewed as bright on the back of the commencement of its liquefied natural gas regasification terminal business in Melaka, Malaysia’s first LNG regasification terminal. Maybank Investment Bank has maintained a hold call on PETGAS as of 23 August 2013, with a target price of RM20.20.

The call and put warrants have the following gearings, PETDAG SW (14.78x), KOSSAN SW (5.79x), SUPERMX SW (7.43x) and PETGAS SW (6.45x). 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 19 September 2012 and First Supplementary Base Prospectus dated 27 August 2013.

  • Maybank Investment Bank Berhad (15938-H). All Rights Reserved. A Participating Organisation of Bursa Malaysia Securities Berhad. | Terms & Conditions | Privacy Notice
Note

You are about to be redirected away from this site.

ProceedCancel