American Baby

The indicative timing of events leading up to the listing of and quotation for the GOOGLE SW on the Call Warrants Board of Bursa Securities is set out as follows:-

Price fixing date
29 October 2007
Opening of the Offering 30 October 2007
Closing of the Offering at 3.30 p.m.
31 October 2007
Allotment of the SW to placees
9 November 2007
Listing of the SW on the Call Warrants Board of Bursa Securities
14 November 2007


Issue Size : Up to 90,000,000 SW
Entitlement Ratio : Three thousand (3,000) SW shall initially be entitled to one (1) GOOGLE Share
Reference Currency : United States Dollar (USD)
Settlement Currency : Ringgit Malaysia (RM)
Issue Price : RM0.11, being 14.59% of the Reference Price divided by 3,000 x exchange rate of USD/RM 3.3400, rounded up to the nearest sen
Exercise Price : USD680.00, being 100.4% of the Reference Price

As of yesterday's price of US$694, the premium is 12% for the call warrant at 11 sen. At 14 sen, the premium goes to 18%. Gearing would be 5.4x. I would expect a lot of over-eager buyers. Don't chase above 15 sen or when premium breaches 20%. At the current price level of close to US$700, a lot of things has to go right every quarter, even then we may not see US$750 within 6 months. So, beware.

Comments

Smurf said…
Dali, may I know how you get the 12% premium? Appreciate if you can explain.
acerlimit said…
Dali, you are the best!
Detail explainations plus fact and figures.

Thank you for your guidance.
sqkanji said…
Dali,

Thanx for the feedback. Appreciate it and keep the good work!
adi said…
Hi Dali!

Just want to tell you that I appreciate your coverage and tips on warrants.

There are very few good finance blogs around, fewer still with such high calibre as yours!

Cheers ;)