KUALA LUMPUR, Jan 21 – Maybank Investment Bank Bhd (Maybank IB) is issuing eight new European style cash settled call warrants over ordinary shares, with an issue size of 100 million each.
In a statement here Wednesday, Maybank IB said the structured warrants, which will be listed today, were issued to Eastern & Oriental Bhd (E&O), Gamuda Bhd (Gamuda), IOI Properties Group Bhd (IOIPG), Mah Sing Group Bhd (Mahsing), Malaysian Resources Corporation Bhd (MRCB), Sunway Bhd (Sunway), UEM Sunrise Bhd (UEMS) and UOA Development Bhd (UOADEV).
Under Budget 2015, RM48.25 billion is allocated for infrastructure projects including the RM23 billion Second MRT Line and the RM9 billion LRT 3 Project. Maybank IB Research has an ‘overweight’ call on the Malaysian construction sector with Gamuda as its top buy.
Despite the challenging economic environment, up to 143,000 units of new affordable homes are expected to be built and a funding limit of RM500,000 for married youths with household income not exceeding RM10,000 was allocated under Budget 2015, said the statement. Sophisticated investors with a bullish view of the construction and property sectors in 2015 may purchase the warrants on offer to capitalise on any share price rally on construction and property stocks.
The call warrants have the following gearings: E&O-C (3.55 times), Gamuda-C (5.52 times), IOIPG-C (2.89 times), Mahsing-C (5.07 times), MRCB-C (3.60 times), Sunway-C (5.50 times), UEMS-C (4.37 times) and UOADEV-C (4.67 times). The tenure of all eight structured warrants is approximately 12 months.