Should warrants be listed?

CALL warrants or just warrants are derivative instruments issued by a company to raise capital at a future date based on an assumption that these instruments will be exercised during the warrants’ lifespan.

These warrants are issued by a listed company and are typically issued as a sweetener to a corporate exercise, especially in a rescue scheme or a rights issue. There are also instances where companies undertake a bonus issue of warrants as a “reward” to shareholders. This was the case in the recent Top Glove Corp Bhd bonus issue of warrants on the basis of one warrant for every 20 shares held.