Please becareful.Its up from 30 over cents to over rm 3.Tht almost 11 times.Probably after the bonus issues the big drop will come.Rm 3 ex will be rm 2, rm 3.30 ex will be rm 2.20.Will drop after the price ex.
@Michael kwok, based on my calculation at today closing price after ex is ((299X2)+177)/3=258. Can you share with us how you get the figure RM2 / RM2.2? I want to learn from you. Tq
MICHEAL KWOK, U cant compare a Musang king retail seller earning when he become Musang King Plant owner , that the different between old Scib & new Scib under Boss Karim.. Old business selling Musang king, new business growing & taking care Musang king tree and wait for musang king to drop.
Assuming SCIB closes at 3.00 on Friday , it will be adjusted to around 2.64 on opening on 2/2 on account of Warrants being in the money. This is based on my estimate calculations.
Mother RM3,, reference price for scib on ex date (3x2 +1.77) /3 = 2.59. For warrant, 30% premium 2.59x1.3 - 1.77 = 1.597 /1.60.. Minus of the price adjustment (3-2.59 per shares =41 , 2 mother to 1 warrant, mean gain =1.6 -( 2x41) =79c.
On behalf of the Board, UOB Kay Hian wishes to announce that the Board had on 14 January 2021 ("Price-Fixing Date") resolved to fix the *exercise price of the Warrants at RM1.77 per Warrant* ("Exercise Price"). The Exercise Price represents a premium of approximately 29.65% to the 5-day VWAP of SCIB Shares of RM1.3652 per SCIB Share up to and including 13 January 2021, being the last trading day before the Price-Fixing Date ("LTD")
There are a few terms that we will usually encounter when investing in warrant:
- Exercise price: the price warrant holder pay to buy the company share - Conversion ratio: the number of warrant(s) needed to buy one company share - Expiry date: the date the warrant will expire - Gearing: indicate the level of leverage - Premium: indicate the difference between mother share price & warrant price if warrant is exercised.
Let's take SPSETIA as example again:
On 22 July, mother share SPSETIA RM4.07, SPSETIA-WB RM1.04.
- Exercise price: RM2.99 (fixed) - Conversion ratio: 1 warrant for 1 share - Expiry date: 21 Jan 2013 - Gearing: 3.91 (4.07/1.04) The higher the gearing, the higher the leverage (higher potential gain/lost) - Premium: -0.98% [(2.99+1.04-4.07)/4.07] x 100. The lower the premium, the "cheaper" is the warrant
If I have 1000 SPSETIA-WB bought earlier at RM0.90, and I exercise my right to convert all of them into SPSETIA shares on 22 July, I need to pay the exercise price of RM2.99 for each converted shares. Thus the total cost of conversion is RM2.99 x 1000 = RM2990 (excluding other trading cost).
For this case, the total cost for this 1000 SPSETIA shares is (RM0.90 + RM2.99) x 1000 = RM3890. If I immediately sell all of them on 22 July at RM4.07, I'll gain RM107 (RM4070-RM3890). By right I can't sell the converted mother shares on the same day as the conversion date because conversion usually takes few weeks time to complete. This is just example.
However, if I do not wish to exercise the warrant right, I can sell the warrant directly in the stock market like most warrant holders will do. If I manage to sell all 1000 SPSETIA-WB on 22 July at price RM1.04, I'll gain (RM1.04-RM0.90) x 1000 = RM140.
If I am not mistaken, all free warrants start-up price is 0.005, but market will decide how much its listed on the first day, like kpower ~0.305 (correct me if I am wrong) because that's the price buyers and sellers agreed at 9:00am on the first day, also the limit in bursa regulations (not over 30% for a limit up of a penny stock in a day)
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
Innerpeacee
166 posts
Posted by Innerpeacee > 2021-01-27 16:09 | Report Abuse
I never ever let go a flying company that I don't know the highest possibility. Not too late to take profit when it start retrace