Anyone knows why new price is 1.51? 1.51 x4 = 6.04 6.79 - 6.04 = 0.75 for 2 free warrants? So warrants not free? ---------
Your calculation is wrong. You need to understand that price before ex-date and theoretical price on ex-date MUST be the same.
For example if the share price is RM5, with bonus issue 1 for 1 the theoretical ex-price should be RM2.50, because you get free bonus share. Same thing apply to any ratio be it for bonus or share split.
So lets apply this to JFTECH. Closing price yesterday was 6.79, if you used my formula in my posting before this the actual figure is 1.5183, but Bursa took it as 1.51
So if you have 1000 shares = 1.5183 x 4 = 6.0732
For free warrant the formula should be : (mother shares - exercise price) So for JFTECH : (1.5183 - 1.16) x 2 = 0.7166
Hi All The warrants when listed will limit up at 0.305 with very few sellers. It will probably take 3 to 4 trading days before you can buy any warrants, my guess only.
Look at mokluhanj21's explanation from yesterday ***********************
mokluhanj21: My understanding is very simplistic, correct me friends if somewhere not right: 1. Post bonus issue, price will adjust to: RM1.6975 2. Post warrants issue, price will adjust further down to: RM1.5183 (assuming full exercise of all warrants, which may depend on warrant holders view of the future- anyway, tomorrow it's already in the money, so traders can easily exit)
Remarks:- The Bonus Issue of Shares with Warrants will entail the issuance of 692,998,755 Bonus Shares to be credited as fully paid-up, together with 461,999,170 Warrants on the basis of 3 Bonus Shares together with 2 Warrants for every 1 existing JF Tech Share held by the entitled shareholders.
The Bonus Shares and Warrants will be listed and quoted on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities") on 3 February 2021, being 2 market days after the submission of the quotation application for the Warrants to Bursa Securities.
The notices of allotment for the Bonus Shares and Warrants will be issued and despatched to all entitled shareholders not later than 4 market days after the date of the listing and quotation of the Bonus Shares and Warrants on the ACE Market of Bursa Securities.
The Company had on 30 December 2020 executed the deed poll constituting the Warrants.
JF Technology will Limit Up today at 1.96. This is my hunch. Don't sell if you have already paid for the Mother share. Hope everyone makes good money to Celebrate CNY 2021.
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hakubasnow
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Posted by hakubasnow > 2021-01-20 09:49 | Report Abuse
@ YU_and _Mee
Anyone knows why new price is 1.51?
1.51 x4 = 6.04
6.79 - 6.04 = 0.75 for 2 free warrants? So warrants not free?
---------
Your calculation is wrong. You need to understand that price before ex-date and theoretical price on ex-date MUST be the same.
For example if the share price is RM5, with bonus issue 1 for 1 the theoretical ex-price should be RM2.50, because you get free bonus share. Same thing apply to any ratio be it for bonus or share split.
So lets apply this to JFTECH.
Closing price yesterday was 6.79, if you used my formula in my posting before this the actual figure is 1.5183, but Bursa took it as 1.51
So if you have 1000 shares = 1.5183 x 4 = 6.0732
For free warrant the formula should be :
(mother shares - exercise price)
So for JFTECH :
(1.5183 - 1.16) x 2 = 0.7166
So total = 6.0732 + 0.7166 = 6.7898