New Call Warrants issued

Tomorrow, 4 new CWs are expected to begin trading on the exchange. They are Bursa-CB, Genting-CB, Maxis-CB & Tenaga-CD. I've tabulated below how these new CWs compare to the existing CWs of the same underlying shares.



How do they rank?

• Bursa-CB has a longer tenor; offers higher gearing; and, at a lower premium than the existing Bursa-CA.
• Genting-CB has a longer tenor and offers higher gearing but at a higher premium than the existing Genting-CA.
• Maxis-CC offers higher gearing at a lower premium than the existing Maxis-CA & Maxis-CB. In term of tenor, it has a longer maturity period than Maxis-CB but shorter than Maxis-CA.
• Tenaga-CD offers higher gearing at with relatively lower premium but at relatively shorter tenor than the existing 3 CWs of Tenaga.

Based on the foregoing, I expect some weakness for Bursa-CA while the other existing CWs would be unaffected. Since all 4 new CWs were issued at undemanding premium, I expect some capital appreciation or gain, especially for Bursa-CB and possibly Maxis-CC.