The problem is the exercise price very high,if u have 6,000 shares after split will be 24,000 shares,u will be given 8,000 free warrant,if want to convert u have to take out 8,000x$2.50=$20,000. Maybe Kpower will split again later without giving warrant just like Topglove 3 to 1 reduce the exercise price to around $0.80
Kens88,if u have holding power u can buy some first,buy more when consolidation ,bollinger band,rsi and macd at the high side.Eventually Kpower will go up. Aminvestment so bullish on this stock,PT $4.16 on 6Nov,a week later raise to $5.06
Extraxt from Multiple proposal statement pertaining Warrant :
Basis and justification of determining the issue price and exercise price of Warrants The Warrants will be issued at no cost to the Entitled Warrantholders. The Board has fixed the exercise price of **RM2.50** per Warrant after taking into consideration, amongst others, the following:- (i) the historical price movement of KPower Shares; (ii) potential future earnings of KPower and its subsidiaries ("KPower Group" or the "Group"); (iii) Warrants are exercisable at any time for a tenure of 5 years from the date of issuance of the Warrants; and (iv) Warrants will be issued at no cost. The Board is of the view that the exercise of the Warrants may raise additional funds for the Group in the future, as well as improve the trading liquidity of KPower Shares with the increase in the number of KPower Shares as and when the Warrants are exercise
Giving a 50% premium, theorothical warrant only have value when mother share at RM165 + 85(51% premium over mother)... If before split mother can go up to RM6. 50, / RM7, it might worth 10cent atleast.
Im not surprise if karim offload a bit of his share. Bro he is holding 30++% not much share floating in the market. He need to offload some to increase the fluidity of the market and somemore he want to earn too haha
The Board decision to split the shares and issued the warrant is to increase the free floats of the Kpower. Big investment funds have a certain criteria for thier long term stocks selection. A bigger free floats plus the company performance will attract more big names to thier share list. Imagine names eg. Temasek Holdings or GSIC
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kens88
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Posted by kens88 > 2020-11-14 09:00 | Report Abuse
if enter now still got upside?