New AMMB warrants better than existing ones

MALAYSIA'S fifth largest lender, AMMB Holdings Bhd, has been garnering a fair bit of interest with the rights issue of its new warrants (AMMB-W 2003/2008). The latest development has been the renounceable rights for the 125.2 million warrants priced at 12.37 sen (on the basis of 1 new warrant for every 8 existing ordinary shares .  

The new AMMB warrants carry an exercise price of RM3.60 and will expire five years later in early 2008. The warrants are detached from AMMB's RM150 million 3 per cent 5-year redeemable unsecured bank-guaranteed bonds.