How To Make Money from Structured Warrants

Stock warrants are issued with a debt instrument that allows an investor to buy stock a later date for a higher price.

What is a structured warrant?

A structured warrant is issued by a third party financial institution, on the shares of an unrelated company, a basket of companies’ shares or an index.


To understand what a structured warrant really is, let’s compare the characteristics of a company warrant and a structured warrant.

Company warrants
Structured warrants
Issued by Listed company Third-party financial institution
Underlying shares Shares of the company Any company shares that are not related to the financial institution (but must meet the requirements under the SC’s Guidelines for the Issue of Structured Warrants )
On exercise Company will issue additional shares to meet obligations. This results in share dilution Does not result in dilution of the underlying shares
Maturity period Up to 10 years 6 months to 5 years
Settlement The terms and conditions of warrants are freely defined by the issuer

You have probably heard the phrase “warrants are very sexy instruments”.

When the market is hot, speculators and traders chase after the warrants driving its prices up.

Conversely, when the market declined, many still hold on to their warrants until it become worthless.

It is the lack of understanding warrants, especially Structured Warrants, that cause many investors to lose money.

Stocks & Mutual Fund Investments : What Are Stock Warrants?



Jupiter Online would like to invite you to this FREE training session on Structured Warrants to give you a better understanding and appreciation of Structured Warrants so that you will be able to trade and make money from it.

Topics that will be covered are as follows:

1. Why and Who Should Trade Warrants?

2. Common Misconceptions About Structured Warrants

3. How To Pick the Right Structured Warrants to Make Money?

4. Golden Rules for Trading Structured Warrants

5. Case Study.

Detail of Event

Date: Saturday, 5 December 2009

Time: 9.00 am to 11.30 am

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Venue: Level 9, Menara Olympia, 8 Jalan Raja Chulan, 50200 Kuala Lumpur

Speaker: Speaker from NagaWarrants

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Structured warrant market drawing attention

PETALING JAYA: The structured warrant market in Malaysia, which has huge potential for growth, has attracted a lot of attention lately.

Kenanga Investment Bank Bhd head of equity derivatives and structured products Seow Choong Liang said call warrants had seen more activity of late.

“As the structured warrant market tracks sentiment of the underlying asset, call warrants listed on Bursa Malaysia have seen increased activity along with the current overall bullish stock markets,” he said.

The Securities Commission and Bursa Malaysia recently revised the regulations for the issuance and listing of structured warrants. The new guidelines, which allow put warrants to be issued in addition to call warrants, took effect last month.

AmInvestment Bank Bhd director and head of equity derivatives group Ng Ee Fang said investors were not so sensitive to changes in guidelines or regulations, but the issuers had been quick to respond.

“For instance, we launched Malaysia’s first put warrant (on Hong Kong exchanges and clearing) in the same week that the change in regulations allowed us to do so.

“We and the other issuers have also been quick to issue via direct listing, which gives us more flexibility than the traditional placement method,” she said, adding that there was greater interest in a structured warrant when its underlying stock or asset was actively traded.

OSK Investment Bank Bhd head/director of derivatives and structured products Foo Keah Keat said some of its structured warrants issued via direct listing had “enjoyed good trading volume” after listing.

“I think investors have either accepted this new offering method, or they have no problem with it. More important is our selection of the underlying stocks and market timing,” he said, adding that interest in the existing four exchange-traded funds (ETFs) call warrants had so far been poor.

Foo thought that the ETF concept was “a little more difficult to understand” and it could also be that they (investors) were less familiar with the underlying ETFs, which were all foreign.

“We have seen a significant decline in interest in foreign structured warrants during the last six months. Hence, the reason may not be ETFs per se but the lack of interest in foreign structure warrants in general.

“I think the jury is still out on put warrants. The lukewarm interest could be due to the current ‘more bullish’ market sentiments and lack of understanding. More investor education on this new product is needed,” he said.

Commenting on the trading of structured warrants, Foo said OSK saw active trading in some counters every now and then when there had been a sharp movement in the underlying share price.

“This showed that there are investors monitoring and trading the structured warrants on a regular basis. Our goal is to convince more investors to recognise the benefits of structured warrants as effective trading (investment) instruments and actively trade in them,” he said.

Seow agreed that trading in structured warrants had gained some momentum. He said the trading had been on an uptrend since the second quarter of this year.

The reduction of the tick size on traded securities had been a disadvantage to traders, he added.

“For example, if a trader in the past were to buy 1,000 Maybank shares at RM6.42, the total transaction cost after paying transaction fee is RM96.68 (assuming the minimum brokerage fee of RM40, 0.1% for stamp duty, 0.03% on clearing fee and multiplied by two for buying and selling).

“In this transaction, investors would only need two tick moves (five sen per tick) upward to break even. However, due to the change in tick size to one sen, the investor will need 10 tick moves to break even,” Seow said.

As traders looked at warrants as proxies to the underlying, and if the tick size on the underlying had come down significantly while that of the warrant issued had not changed (most of the warrants today still fall within the 0.05 sen tick size), he said the trader then might not be as inclined as before to trade in warrants as they would be seen as not tradable (not much price movement).

Meanwhile, Ng said AmInvestment had two warrant programmes. Its regular warrant programme is targeted at sophisticated investors who want to take leveraged positions on stocks or indices.

“Second, a low strike warrant programme which is targeted at long-term investors who want greater access and growth over the medium term. The previous issue was the 100 million Berkshire B Zero Strikes at RM1 each,” she added.

On return of any warrant, Ng said it would depend on the performance of the underlying stock or asset.

“For instance, if the underlying stock rallies, a call warrant on the stock will rally, while a put warrant price will fall. Also, when the underlying stock rallies, an out-of-the-money call will rise faster in percentage terms (because of the inherent leverage) than a deeply in-the-money call,” she explained.

Foo said the structured warrants offered a “play on market volatility.” “Structured warrants are for active and slightly more sophisticated traders as well as institutional investors, and for the more experienced and sophisticated retail investors.”

He said structured warrants could be considered a “high-risk high-return instrument” if used for leveraging purposes. On the other hand, structured warrants could be viewed as offering lower risk if used for a limited downside strategy, he added.

Structured warrants make strong debut

PETALING JAYA: Investors showed a healthy appetite for the 10 structured warrants that made their debut yesterday on Bursa Malaysia, taking up 76 million units, or 7%, of the total volume traded.

Among them, Axiata-CC was the most actively traded in tandem with its underlying shares, Axiata Group Bhd.

Axiata-CC rose more than 20% to 18.5 sen from its offer price of 15 sen each while Axiata shares gained 13 sen, or 4%, to RM3.06 per share.

Gamuda-CI gained over 20% to 26.5 sen from its issue price of 22 sen. Gamuda Bhd, meanwhile, closed unchanged at RM3.34.

HKEX-H1, issued by AmInvestment Bank Bhd, is the first put warrant to be issued on Bursa. The underlying stock for the put warrants is the Hong Kong Exchanges and Clearing Ltd (HKEX).

AmInvestment also issued the call warrants on HKEX, as the pair of call and put would allow investors to take a position on the potential upsides or downsides of HKEX.

The other warrants listed yesterday were based on local stocks that have large capitalisations.

A head of research of a local brokerage said investors were likely riding on the underlying stock since entry via the structured warrants was cheaper than buying into the actual shares.

He cautioned, however, that investors might “get themselves caught” if they’re not fully aware of the mechanism of such products.

Investors might have to be satisfied with a smaller profit as the gains in structured warrants were unlikely to be of the same proportion as the underlying shares, he added.

An institutional dealer with a foreign house said interest on structured warrants was subject to market conditions and the performance of the underlying stock.

“Retail investors still need more exposure to trading in such instrument as some are not familiar with the nature of structured warrants,” he said.

Another dealer concurred, saying “retail investors are unsure of how to trade in structured warrants”, which was why trading volume remained moderate to thin for such instrument.

“Institutional and sophisticated investors are mostly the ones trading in these (warrants),” he added.

8 Responses to “How To Make Money from Structured Warrants”

  1. AmInvestment to list 4 new call warrants

    PETALING JAYA: AmInvestment Bank Bhd will list four new call warrants on April 6, with issue prices of between 15 and 16 sen each and nine-month tenure. The warrants are over Ann Joo Resources Bhd, Berjaya Corp Bhd, Wah Seong Corp Bhd and Genting Singapore Plc.

    “These issuances cater to warrant traders who are very rotational in their risk appetite,” AmInvestment managing director TC Kok said in a statement.

  2. What are the risks in buying call warrants?
    Personal Investing – By Ooi Kok Hwa

    Prices are influenced by intrinsic value and time value

    LATELY, we notice that there are growing numbers of call warrants getting listed on Bursa Malaysia. Even though there are many call warrants issued and traded in the market, the trading volumes of these call warrants are relatively low compared with the normal warrants.

    Besides, a lot of investors have been complaining that they are unable to make money from the call warrants that they have bought.

    Many investors cannot differentiate between a warrant and a call warrant.

    A warrant is a transferable option certificate issued by a company which entitles the holder to buy a specific number of shares in that company at a specific price (or exercise price) at a specific time in the future. It is normally issued by a listed company.

    A call warrant (like a call option) also gives investors a right to buy stocks in a company within a fixed period of time. However, warrants are issued by listed companies whereas call warrants are issued by investment banks.
    An investor monitoring share prices at a private stock market gallery in Kuala Lumpur. Many investors have been complaining that they are unable to make money from the call warrants that they have bought.

    If investors exercise the rights in warrants, they will receive the listed companies’ shares.

    Meanwhile, upon maturity of call warrants, investment banks will only pay investors in cash if the closing price of the listed companies is higher than the exercise price of the call warrants. Investors will get nothing if the closing price of the listed companies is lower than the exercise price.

    There are many risks in buying into call warrants. Call warrants have shorter maturity period as compared to warrants. Normally, warrants have maturity period of five years or more whereas call warrants have very short maturity period of less than a year.

    In many instances, investors who have bought into these call warrants do not realise that their call warrants have expired. Nevertheless, call warrants will be automatically exercised upon the maturity date if the settlement price is higher than the exercise price.

    As mentioned earlier, a lot of call warrants are not actively traded in the market. In fact, a majority of them do not have trading volume on a daily basis. We believe one of the possible reasons is that some of these call warrants are getting nearer to maturity date.

    The prices of call warrants are influenced by their intrinsic value and time value.

    If the call warrants are getting nearer to their maturity date, the time value will be closer to zero. In addition, if the mother price of the listed companies is being traded at a lower price than the exercise price plus the premium that the investors have paid for the call warrant, the market price of these call warrants will fall below their original issue price.

    For those who have subscribed into these call warrants, rather than cutting losses and selling them into the market, they will likely hold on to the call warrants and hope that the mother price will recover one day. Unfortunately, in many instances, investors get nothing upon maturity of these call warrants.

    Given that the gap between the buying and selling prices is quite big for some call warrants, many investors find it difficult to buy or sell the call warrants. Hence the fact that call warrants usually have low trading volume implies that this is an instrument with very high liquidity risks.

    The main reason for a lot of investors to purchase call warrants is the hope of getting payments from investment banks. However, investors need to understand that the majority of the call warrants are European-styled, which means investors cannot exercise them before the maturity date.

    The majority of call warrants are settled in cash for the difference between closing price and exercise price. The formula for cash settlement amount is equal to the number of call warrants x (closing price – exercise price) x 1/exercise ratio. Hence, investors need to pay attention to the exercise price, exercise ratio and premium that they have paid.

    For example, the exercise price on Call Warrant Company A (Company A CA) is RM10, the exercise ratio is 10 Company A CA to 1 Company A share and the premium investors need to pay is 10 sen for each Company A CA. To the call warrant holders, in order to breakeven, the mother share price of Company A needs to go higher than RM11 or RM10 plus RM1 (10×10 sen, which is the total premium that they have paid).

    Lastly, investors need to pay attention to the fundamentals of the mother companies and check the potential price appreciations for these companies.

    Companies with good prospects will have higher possibilities of price appreciation and therefore lower risk of buying into the call warrants.

    # Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.

  3. Bursa cancels Unisem warrants trade

    PETALING JAYA: Bursa Malaysia cancelled trading in newly listed Unisem (M) Bhd warrants from 2.30pm to 3.23pm yesterday due to “a mistake in computing the upper limit price” of the warrants.

    The warrants resumed trading at 4.05pm.

    “The upper limit price will be 50 sen for the remaining session. All the previous orders in the order book will be purged,” the stock exchange regulator said.

    When contacted, a Bursa spokesman said the regulator would not make any further comment other than what was already announced on its website.

    Meanwhile, a remisier told StarBiz that Bursa should be more careful in scrutinising the trading.

    “It allowed this to continue for an hour before it made an announcement on the trade cancellation,” he said, adding that such moves would not engender confidence in the system.

    The warrants closed at 50 sen yesterday after reaching a high of 80 sen at 2.34pm with warrants worth RM9.31mil traded on the exchange.

    It was trading at 61.5 sen before Bursa Securities halted and subsequently cancelled trading.

    The warrants, which traded under the stock code Unisem-WA, were issued under a rights issue exercise by the semiconductor company involving 168.54 million warrants of 10 sen each on the basis of one new warrant for every four existing Unisem shares of 50 sen each. The strike price for the warrants is RM2.18.

    Although listed yesterday, Bursa forbade direct business transaction until 10am as the warrants did not have any stock name or stock code

  4. Remisiers unhappy over Unisem warrant cancellation

    PETALING JAYA: Remisiers are still smarting over Bursa Securities’ cancellation of the trading in Unisem (M) Bhd’s newly listed warrants for nearly an hour on Monday afternoon.

    Remisiers Association of Malaysia president Sam Ng asked if the stock exchange was willing to take responsibility when investors came to remisiers to claim costs incurred over losses from the action.

    “As it is, when remisiers amend contracts, they’re penalised, so how can Bursa cancel the trades that are already done?” he asked, adding that this was not good business practice.

    However, the stock exchange regulator had its own reasons for cancelling the trade.

    “The trades were cancelled to maintain a fair and orderly market,” Bursa Securities said in a reply to a StarBiz query.

    It added that the situation was viewed seriously and steps were being taken to institute further controls to ensure this does not occur.

    Trading in the newly listed Unisem warrants were cancelled from 2.30pm to 3.23pm with the warrants resuming trading at 4.05pm.

    The warrants closed at 50 sen on Monday after reaching a high of 80 sen at 2.34pm with warrants worth RM9.31mil traded on the exchange. It was trading at 61.5 sen before Bursa Securities halted and subsequently cancelled trading.

    Bursa Securities had said in an announcement on the same day that this was due to “a mistake in computing the upper limit price” of the warrants. When trading resumed, the upper limit price was set at 50 sen for the rest of the session.

    A remisier attached to a local investment bank said with the warrants’ price movement that day, it would be quite difficult not to spot such “an obvious error”.

    He added that this kind of action “did not instil confidence” in the local market which the various regulatory bodies have worked so hard to build up.

    “At the end of the day, we’re the ones who’ve to face the customers, who is to ensure that this will not happen again?” he asked.

    The warrants, which traded under the stock code Unisem-WA, was a rights issue exercise by the semiconductor company involving 168.54 million warrants of 10 sen each on the basis of one new warrant for every four existing Unisem shares of 50 sen each. The strike price for the warrants is RM2.18.

  5. AmBank to issue 4 new call warrants tomorrow

    KUALA LUMPUR: AmBank (M) Bhd, which will replace AmInvestment Bank Bhd as the issuers of structured warrants for the group for upcoming issues, said it will issue four new European style cash-settled call warrants (CWs) to be listed tomorrow .

    The new CWs will be issued on the existing ordinary shares of four listed companies; Kencana Petroleum Bhd, SapuraCrest Petroleum Bhd, QL Resources Bhd and Proton Holdings Bhd.

    “Markets in general have turned positive but future volatility is given, so AmBank has chosen these four stocks for their various profiles,” AmInvestment Bank’s director and head of equity derivatives Ng Ee Fang said in a statement dated Sept 24.

    She said the latest offerings were aimed at sophisticated traders who are bullish of the four stocks, with an appetite for leveraged exposure.

    The four new call CWs have effective gearings ranging from 2.23 and 3.05 and are targeted at investors who want leveraged exposure to the underlying.

    According to Ng, AmBank warrant programme aims to provide and suit different investor profile. “We give investors two commodity plays – in the oil and gas (O&G) sector (Kencana and SapuraCrest), a growth stock QL Resources and an event-driven trade – Proton.

    In the O&G sector, there was a bullish view domestically and regionally with emerging signs of new domestic-centric jobs such as RM4bil fabrication contracts for Malaysian shallow fields to be awarded in the second half of 2010, RM3bil Petronas LNG re-gasification plant in Malacca, new mainenance and hook up commissioning services for existing offshore platforms estimated at RM3bil and Exxon-Mobil’s enhanced oil recovery investments worth over RM7bil for existing fields.

    SapuraCrest is one of the two top picks, having a dominant position in Malaysia’s pipe-laying and offshore installation services and tender rig market. The SapuraCrest CW is priced at 18 sen with a gearing ratio of 4.41 times.

    Kencana, which is regarded a proxy for Malaysia’s O&G sector, had secured RM634mil worth of contracts which includes small jobs worth RM32mil for provision of hook-up and commissioning services (HUC) for fields located offshore Malaysia, Petronas Carigali’s drilling charter for the tender rig and marine charter for 8,080 bhp Gemas anchor handling tug and supply vessel as well as RM11mil contract to provide HUC services for Petronas Carigali’s Semarang field located offshore Sabah.

    Kencana CW is priced at 16 sen with a gearing ratio of 3.29.

    Proton meanwhile is expected to unveil its Waja replacement model which will be rebadged version of Mistsubhi’s Lancer model. It said the CW on Proton is priced at 15.5 sen with a gearing of 4.08.

    Ambank is also launching Malaysia’s first CW on QL Resources, which recently acquired a 23% in Lay Hong Bhd and disccussed merger and acquisition possibilities to expand its business locally and regionally.

    With strong fundamentals, QL Resources is viewed as a growth stock with long-term prospective.

    The QL CW is priced at 15.5 sen with a gearing ratio of 4.94

  6. What are ETFs and why is it beneficial to buy them?
    Personal Investing – By Ooi Kok Hwa

    LATELY, the number of ETFs that get listed on Bursa Malaysia has been increasing.

    At present, we have a total of five ETFs listed in Malaysia. Unfortunately, we have noticed that not many investors are aware of these instruments and there is also a lack of understanding on the true value of these ETFs.

    ETF stands for exchange-traded fund. Buying into ETFs is almost similar to buying normal mutual funds. The key differences are that investors can buy or sell ETFs in a stock exchange or go through an authorised participant whereas investors can only buy and sell mutual funds through unit trust companies or other financial institutions.

    ETF originated in United States. During 1960s and 1970s, some fund managers in the US discovered that it was quite difficult to beat the stock market index. They discovered that it was better to buy stocks that mirrored the index composition as many fund managers found that they tend to underperform the index.

    As a result, the ETF industry has been growing in the US from two ETFs in 1995 to more than 900 ETFs listed in the US now. At present, there are many types of ETFs available in the US, for example ETFs on stocks, bonds, commodities, currencies and countries. For stocks, ETFs can be further divided into different types of market capitalisation (big cap vs small cap), equity styles (growth investing vs value investing) as well as different types of sector funds (like ETF on stocks in technology, health care or financial institution sectors).

    One of the key advantages of buying into ETFs is that it is cheaper to buy ETFs as compared to normal mutual funds. Investors need to pay about a 5.5% sale charge (also known as front-end load) for normal mutual funds whereas they only need to pay a normal brokearge fee of 0.7% (inclusive of all other charges) for ETFs.

    Comparing similar type of funds, the annual management fee for ETFs is generally lower than that of mutual funds.

    Normally, ETF will charge about 0.65% per annum (0.6% for the annual management fee and 0.05% for the index license fee).

    However, normal mutual funds will charge about 1.5% annual management fee. Assuming an investor intends to buy an index fund and intends to hold the fund for a one-year period, he or she will incur about 1.35% (0.7% – total transaction fee and 0.65% – annual management fee and index license fee).

    However, the investor will incur about 7% (5.5% for sale charges and 1.5% for annual management fee) if he buys into the normal mutual funds. Given that ETFs are using the “in-kind” creation and redemption of shares, they eliminate any price discrepancy to net asset value (NAV) due to the supply and demand pressure.

    As compared with close-end funds where investors may buy at the premium or discount to its NAV, the price that we pay for ETFs will be closed to its NAV like the normal mutual funds. As an added advantage over mutual funds, ETFs are generally more liquid than normal mutual funds as we can buy and sell them through secondary markets.

    Please refer the chart for the mechanism of creating an ETF. The reverse of all of the arrows will be for the redemption of an ETF.

    In addition, ETFs provide investors the benefits of portfolio diversification, same as normal mutual funds. Given that they will try to replicate the benchmark indices, their performances will be very close to the indices.

    In Malaysia, sometimes we notice that some mutual funds may underperform their benchmark indices.

    In short, we believe that there will be more ETFs getting listed on the stock market.

    It will be to investors’ benefit to understandhow they can add ETFs onto their investment portfolios as a cost effective investment alternative.

    # Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting

  7. OSK to issue four call warrants

    KUALA LUMPUR: OSK Investment Bank will offer four new call warrants (CWs) on AIA Group Ltd, SPDR Gold Trust, Malayan Banking Bhd and MMC Corp Bhd to be listed on Bursa Malaysia today.

    In a statement yesterday, OSK said the CWs would offer affordable and leveraged investment alternatives for the Malaysian investors.

    “The issue price of the four CWs has been fixed at 15 sen each,” it said.

    OSK said the four underlying stocks had been selected for their interesting market profiles and the various market/industry sectors that they represented. – Bernama

    It said the CWs had effective gearings ranging between 4.1 and 5.2 and were targeted at investors who wanted leveraged exposure on the underlying stocks. – Bernama

    OSK said the CWs would would be offered by way of market making and no initial placement would be made. “Investors can purchase and trade the new CWs upon their listing on Bursa Securities,” it said.

    OSK’s director/head of derivatives and structured products, Foo Keah Keat, said the call warrants would provide local investors the opportunity to gain affordable and leveraged exposure on AIA shares.

    AIA Group Ltd’s mega initial public offering was a success and would be listed in Hong Kong tomorrow. “The offering is consistent with OSK’s objective of expanding the investment choices and opportunities available to Malaysian investors and helping develop our domestic structured warrants market,” Foo said

  8. There’s value in warrants

    PETALING JAYA: In a trend seen over the last two years, shareholders tend to punish companies that make cash calls or announce rights issues.

    The shares in these company fall by up to 50% from the moment they make the first rights announcement to the listing of the free warrants from the rights exercise.

    However, once the rights exercise is complete, not only do the shares begin to appreciate, but shareholder value increases through the free warrants given by the company.

    As these warrants are free and typically make their debut at a low absolute value, their percentage gain is always higher than the mother share’s.

    Shareholders of IJM Land Bhd will probably attest to this. Shareholders who went through the rights exercise in 2008 and are still holding on to the free warrants would be sitting on a hefty gain of 759% today.

    When the rights exercise was initiated, shareholders were not too supportive. The rights issue then only attracted a subscription rate of 71.62%. As IJM Corp Bhd held 69.96% in the company before the rights issue, there were virtually no other subscribers to the rights issue.

    Warrants Capital Sdn Bhd chief executive officer Alan Voon said the normal psychology of an investor was to shun having to fork out cash and to sell stocks that were profitable rather than those that were loss-making.

    When the new free warrants are listed, the psychology of the investor is to sell the warrant since it is free and already profitable. Then they will wait for the mother share to break even before disposing of it, he said.

    Voon said this was the wrong strategy and the shareholder would be better off holding on to the warrants or even buying more new warrants from the open market.

    JF Apex Securities Bhd deputy managing director Lim Teck Seng said the strategy of the slightly speculative and aggressive investor would be to sell the mother share at the time of the rights announcement, even though it was temporarily losing money.

    They would then use the disposal proceeds to buy the rights shares, which would not only be cheaper but come with free warrants.

    Hence overall, there is a gain to be made from this exercise. The investor must be patient, sit through his initial loss and go through the entire exercise. New warrants are simpler instruments.

    The entry cost is cheap, and the direction is typically up. Whether or not the shareholder intends to convert his warrant to the mother share or not, there is a premium to be made, said Lim.

    Voon added that new warrants did not have the issue of overhang, or the presence of big shareholders stuck at a much higher level, hence creating a heavy resistance. This factor enabled the warrant to appreciate faster.

    Voon observed that the warrants of Tiger Synergy Bhd and Frontken Corp Bhd had led the mother shares higher once the rights issue subscribers finished disposing of their free warrants.

    He opined that these warrants may follow the leadership of Ho Wah Genting Bhd warrant-B, which had been a star performer in a relatively short period of time.

    In Tiger’s case, it told shareholders in a circular on the rights issue in July that it would deliver a pre-tax profit of RM61mil spread over the next six financial years from its existing projects.

    The company currently has a gross development value (GDV) of about RM600mil in its projects in Bangsar South, Sungai Buloh and Gemas (Johor).

    The unbilled GDV of the the Bangsar South project, which is the smallest of its projects, at RM50mil, is already double Tiger’s market capitalisation of RM25mil.

    Meanwhile, for the nine months ended Sept 30, Frontken posted a 21.45% increase in net profit to RM9.38mil while revenue inched up 1.51% to RM104.56mil.