When the mother is closing above warrant exercise price before the ex entitlement date , there will be a price adjustment on mother share price on the following trading day.....This is one of the rules prescribed by Bursa. .
I agree with Ally to hold tight tight your tickets. In order to run out the free warrents, the Operator will have to push the price of mother up so that it's enticing for people to buy warrents at the same time the operator Can unload
Scib good counter with so many projects yet to be announce. Imagine after exdate the project annouce one by one... Will be back to rm7 again? Only god knows. We just plan based on Ta and fa.
The good thing I like about this scib is the exercise price of warrent is fixed at 1.77 giving plenty if upside for the mother. With 3 years to expiry, the time value is about 30 cts. This is the base for warrent if the mother is at 1.77. Any price difference of mother upon ex date will be added to the price of warrent. For example if upon ex date the price of mother is 2.07, then the price of warrent is likely to be 0.60
I’ve read some comments here about price adjustment re the warrant. Note that, yes, there actually will be an adjustment BUT only if the warrants are exercised AND if there’s a big number of folks exercising their warrants
However, I would suggest to NOT exercise your warrants if :
1) Mother share price is considerably above 1.77; and 2) You believe in SCIB and that you believe the mother share price could be way higher in 3 years’ time (you’ll make much more with the warrants)
The exercising of warrent Has nothing to do with price adjustment. As I said earlier, the theoretical reference price of free warrent is 0.005 so on ex date, the reference price of mother is 1.80 but on opening, it depends on demand and supply. The mother price May not be adjusted so much as to be 1.80
1st day of warrant trading price much depend of demands and sentiments. It could trade at lowest 0.005 or higher.
If mother share price close above RM2 the day before warrant listing day. Then, warrant could possible trade at 0.83 or even higher giving 30% premium on 1st trading day.
Looking at the trend, everyone rushing to board to enjoy free warrant. I believe those Kpower big fan will divert some of his/her fund to buy SCIB to enjoy free warrant too. There's still a big gap between them. I believe SCIB soon will narrow down the gap.
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....
Artakus
75 posts
Posted by Artakus > 2021-01-19 09:03 | Report Abuse
gogogo