KUALA LUMPUR: Maybank Investment Bank Bhd is issuing eight new European style cash-settled call warrants (CW) over ordinary shares of eight companies.
It said on Wednesday the CW are over the shares of Nestlé (Malaysia) Bhd, Aeon Co. (M) Bhd
, Padini Holdings Bhd
, Dutch Lady Milk Industries Bhd
, Felda Global Ventures Holdings Bhd
(FGV), Sime Darby Plantation Bhd, Top Glove Corporation Bhd
and Genting Bhd
The call warrants will be listed on Thursday 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 IB said.
Maybank Investment Bank Research expects a boost in consumer spending, as a response to the zerorisation of the Goods & Services Tax and stabilisation 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.
Maybank IB said 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 (9.76 times), Aeon-CN (4.05 times), Padini-CU (4.61 times), DLady-CB (8.93 times), FGV-C54 (3.49 times), Sime Plantation-CG (5.0 times), TopGlov-C37 (4.74 times) and Genting-C53 (7.46 times).
The tenure for the eight CWs is about eight months.