Bursa Securities Caps Sunway-WB Price After Surge - Bursa Malaysia Securities has capped the upper limit for Sunway Bhd’s warrants (Sunway-WB) on Tuesday after it surged for two consecutive days.
The regulator said on Tuesday the upper limit was 60.6 sen.
It added upper limit would be maintained in accordance to the trading rules due to trading at the static limit-up price for two consecutive trading days.
Sunway had issued 631 million free warrants on the basis of three warrants for every 10 existing shares held. The warrants started trading last Friday and it surged 30 sen to 30.5 sen and on Monday it hit limit-up, gaining 30 sen to 60.5 sen.
“While we view the bonus issue of shares positively as it will enhance the liquidity of the stock, the free warrants (RM1.53 illustrative strike price), assuming full conversion, would dilute our FY18F EPS by 4-5%,” CIMB Equities Research said in its June analysts report.
CIMB Research said the warrants would generate gross proceeds of RM944mil to RM965mil, to be utilised for future working capital needs.
0 comments:
Post a Comment