compoundingeffect

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2832365

2023-11-25 15:13

compoundingeffect

LBS BINA GROUP BERHAD
Instrument Category Securities of PLC
Instrument Type Preference Shares
Description Adjustments to the conversion ratio of the existing redeemable convertible preference shares ("RCPS") in LBS Bina Group Berhad ("LBGB" or "Company") issued on 8 August 2017 in accordance with the Constitution of LBGB pursuant to the subdivision of every 1 existing ordinary share in LBGB into 2 ordinary shares in LBGB ("Subdivided Share(s)") ("Subdivision") and the bonus issue of new ordinary shares ("Bonus Shares") on the basis of 1 Bonus Share for every 10 Subdivided Shares held by the shareholders of LBGB at 5.00 p.m. on 26 February 2018 ("Entitlement Date") ("Bonus Issue") ("Adjustment")
Listing Date 11 Aug 2017
Issue Date 08 Aug 2017
Issue/ Ask Price Malaysian Ringgit (MYR) 1.1000
Issue Size Indicator Unit
Issue Size in Unit 115,448,037
Maturity Non Mandatory
Maturity Date Not Applicable
Name of Guarantor Not Applicable
Name of Trustee Not Applicable
Coupon/Profit/Interest/Payment Rate The Company shall at its discretion and subject to the availability of distributable profits pay out a targeted preferential dividends of 6% in each financial year calculated on the Issue Price of the RCPS from and including the Issue Date until the date of redemption of the RCPS.
Coupon/Profit/Interest/Payment Frequency The preferential dividends, if declared, shall be payable annually in arrears, subject to availability of distributable profits. Although annual payments are anticipated as disclosed above, the Company may defer, in part or in whole, such payments depending on availability of distributable profits ("Deferred Dividends"). For avoidance of doubt, the Company is not obliged to pay any dividends or Deferred Dividends, as the case may be, in the event that it has insufficient distributable profits.
Redemption Subject to the provisions of the Companies Act, 2016, and any other applicable legislation, the Company may at any time on or after the 5th anniversary of the Issue Date, at its discretion, redeem all (and not some only) of the outstanding RCPS by giving notice in writing not less than 30 days prior to the redemption date to the holders of RCPS of its intention to do so.
Exercise/Conversion Period Not Applicable
Exercise/Strike/Conversion Price Malaysian Ringgit (MYR) 2.2000
Revised Exercise/Strike/Conversion Price Malaysian Ringgit (MYR) 1.0000
Exercise/Conversion Ratio 2 : 1
Revised Exercise/Conversion Ratio 10 : 11
Mode of satisfaction of Exercise/ Conversion price Tendering of securities
Settlement Type/ Convertible into Physical (Shares)

2023-11-25 15:14

compoundingeffect

5789CD LBS-CD LBS-CD: CW LBS BINA GROUP BERHAD (KIBB)
Listing Information & Profile for Structured Warrants

Instrument Category : Structured Warrants
Instrument Type : CALL WARRANTS
Description : EUROPEAN STYLE NON-COLLATERALISED CASH-SETTLED CALL WARRANTS
Underlying Stock : LBS BINA GROUP BERHAD
Issuer : KENANGA INVESTMENT BANK BERHAD
Stock Code : 5789CD
Stock Short Name : LBS-CD
ISIN Code : MYL5789CDY97
Board : Structured Warrants
Sector : PROPERTY
Initial Listing Information :
Listing Date : 27/10/2023
Term Sheet Date : 26/10/2023
Issue Date : 26/10/2023
Issue / Ask Price : Malaysian Ringgit (MYR) 0.1500
Issue Size in Unit : 35,000,000.0000
Maturity Date : 23/09/2024
Name of Guarantor: Not Applicable
Name of Trustee: Not Applicable
Coupon/Profit/Interest/Payment Rate: Not Applicable
Coupon/Profit/Interest/Payment Frequency: Not Applicable
Redemption: Not Applicable
Exercise/ Strike/ Conversion Price : Malaysian Ringgit (MYR) 0.8800
Revised Exercise/ Strike/ Conversion Price :
Exercise/ Conversion Ratio : 1 : 1
Revised Exercise/ Conversion Ratio :
Settlement Type/ Convertible into : Cash

2 months ago

compoundingeffect

current market price 0.1+exercise price 0.88= 0.98 vs mother price 0.705, a premium of 39% , about 6months to maturity.

2 months ago

compoundingeffect

compare to LBS-PA Revised Exercise/Conversion Ratio 10 : 11,
10x.92=9.2/11=0.83 vs mother price 0.705, premium 18%

One will pay a lower premium of 18% instead of 39% in call warrants.
On top of the lower premium, one also gets 6.6/.92 =7% of dividend p.a
Also, if the overall interest rate is dropping, it is worth it for the Board of LBS to consider redemption on RCPS and refinance with a cheaper rate sukuk

2 months ago