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Malaysia : AmBank Issues Six New Call and Put Warrants.

AmBank (M) Berhad ( AmBank ) is issuing six new European style cash-settled structured warrants to meet investors demand for trading and investment opportunities in the current market scenario. Under AmBank s Put-Call Pair Programme, there will be three pairs of put and call warrants ( PW and CW respectively) over the ordinary shares of MBM Resources Berhad ( MBMR ), Malaysia Building Society Berhad ( MBSB ) and RHB Capital Berhad ( RHBCAP ). The structured warrants will have tenures of approximately 13 months and will be listed for trading on 24 July 2012 with issue size of up to 100 million each. All six structured warrants will be listed via the market making method.

Established automotive and auto-parts manufacturer and distributor MBMR is well positioned to benefit from the growing passenger and commercial vehicle demand in the ASEAN region. With the influx of new foreign brands into Malaysia and Southeast Asia, opportunities abound for MBMR to transform itself into a major vehicle assembler and distributor as a local partner for foreign Original Equipment Manufacturer (OEMs). As it is, MBMR s associate, Perodua is the top selling car brand in Malaysia for the first half of 2012. In the financial sector, a potential merger between RHBCAP and MBSB has been touted in recent reports. A merger of the two would produce significant synergies considering MBSB s niche in providing personal financing to civil servants and RHBCAP s extensive distribution network and balance sheet. Nonetheless, as the FBMKLCI hits new record highs, concerns remain over the overall health of the global economy as the Eurozone remains susceptible to a slowdown and similarly for China. Therefore, for the upcoming tranche of AmBank structured warrants, AmBank is issuing three put and call warrant pairs on MBMR, RHBCAP and MBSB under its Put-Call Pair Programme. The warrants will provide investors with opportunities to profit on the volatility, both ups and downs in share price movement, of the underlying shares, said Ms Ng Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad.

Automotive and auto-parts manufacturer and distributor MBMR could potentially see a number of key catalysts driving sales and earnings higher moving forward. Associate company Perodua s car sales for the month of May displayed a strong rebound of 57% Year-on-Year (YoY) and 23% Month-on-Month (MoM). Perodua had also registered a 5% increase in 1Q12 earnings despite a 2% TIV (total industry volume) contraction in the same period. For 2H12, Perodua is reported to be exploring the introduction of a completely new model specifically designed for the ASEAN region. MBMR is also pursuing opportunities to further move upstream into vehicle assembly with potential joint-ventures with Chinese and European carmakers.

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Publication:Mena Report
Geographic Code:9MALA
Date:Jul 24, 2012
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