Since TCS’s debuted on ACE Market in July last year, the group continues to secure new projects despite challenging landscape during the period. Outstanding orderbook registered a sturdy growth from RM420.0m as of June 2020 to RM898.3m as of Sept 2020, providing earnings visibility over next 3 years.
If you add the recent win of over 100mil, it is 1bil worth already.
M Online Technical Focus - 10Feb21 TCS Group Bhd: A strong start into 2021
Trading Catalyst • Established relationship with past and existing clientele with repeating notable customers include Worldwide Holdings Bhd, UM Land Group and Tropicana Group. • Bagged a total of 5 major construction contracts with combined value at RM646.6m since listing in July 2020, bumping unbilled orderbook to approximately RM950.0m to provide earnings visibility over next 2 years. • Proposed 1-for-2 free warrants as part of the initiative to reward existing shareholders. • Technically, price has formed a flag-formation breakout above RM0.545, targeting the next resistances at RM0.59-0.605 with long term target at RM0.65.
If before Ex bonus wa, mother close at 65c, mother will adjust to 65x2 +38=168 /3 = 56 on ex date. Wa listing price = 56 x2 +38 /3 = 150/3x =50. 50-38 =12c. .
Hi AtomicHabits. Thanks for the calculations. Your calculations of the mother share seem correct, that is, 0.56.
But the theoretical price of the warrant will be dependent on the price of the mother share on the eve of the warrant's listing and the exercise price.
Let's assume the listing date of the warrant is on 17 March. On 16 March, TCS share closed at 0.55. The warrant exercise price is 0.38. Then the theoretical listing price of the warrant should be 0.55 - 0.38 = 0.17.
1) i think AtomicHabits's formula to calculate mother share price will apply to counter that come with free bonus issue( i.e.: the number of mother share will increase after the ex-date). Since TCS only offer free warrant, the number of mother share will remain same before and/or after the warrant ex-date/listing date, therefore the price of mother share and warrant will not be affected by the total number of mother share.
2) when TCS share price is at 0.55 warrant price should be around 0.235 (( MS x 12% ) + MS )- EP MS = Mother Share Price EP = Warrant Exercise Price 12% is the Warrant Premium ( my conservative prediction )
Dunningkruger, i also, learn from Kpower & Scib bonus shares & warrant process 1) treat warrant as right issue, when warrant exercise price is higher than mother share just before ex, liek kpower for exam, the mother share price will not be adjusted eg kpower pre ex price : 2.30x3 + 2.50 x1 .. So u can't adjust up the mother shares price.
For Scib, warrant exercise 1.77, <mother pre ex is 2.63 ( if not mistaken), so ex bonus warrant mother price adjusted to 2.63x2 +1.77x1 =2.34 .
Its very logic when u get warrant free 1.77, and its in the price because mother worth 2.63, u can just convert it can gain 2.63-1.77, a whoppy 86c,(if no adjustment to mother shares) but remember eps also diluted due to conversion (more mother shares), so it has to be adjusted to show fair for ex bonus warrant shares holder..
As for the reference price, its same theory, When exercises price < mother shares, it oledi carry value ( in the price) so it must be reflected when listing, says if day before warrant listed, mother at 55c , warrant listing references price will be 55-38 =17c, and LU on 1st listing day can be 5x 17 c ( Not 30C but 400%) only the 2nd day the LU will be 30c if it price still< RM1
Jjasonlim, sure it wouldn't be LU, i just point out that for the 1st listing day, the LU will, be 400% of reference price ( not 30c) eventhough wa price is below RM1. 30C /30% capped only in aplicable day 2 onward.
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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....
TopEarn1
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Posted by TopEarn1 > 2021-02-03 18:45 | Report Abuse
Since TCS’s debuted on ACE Market in July last year, the group continues to secure new projects despite challenging landscape during the period. Outstanding orderbook registered a sturdy growth from RM420.0m as of June 2020 to RM898.3m as of Sept 2020, providing earnings visibility over next 3 years.
If you add the recent win of over 100mil, it is 1bil worth already.
The order book you can refer to Rakuten Research.