3 new CWs to be listed on Wednesday- Bursa-CC, Maybank-CD & Maxis-CD

On Wednesday, we will have the listing of 3 new CWs i.e. Bursa-CC, Maybank-CD & Maxis-CD. Their main terms are tabulated below and, next to them, I've shown the terms of the existing related CWs for comparison purposes.



All these CWs were issued on March 7, which is fairly near to the recent market low on March 5. It is an indication of the weakness of the current market that the prices of these blue chips have dropped back almost to the earlier lows despite their recent recovery. As such, all three new CWs are priced at about 10% premium (basing on their IPO price) and, at these premium, they are less attractive than the existing CWs for the same underlying shares. The only possible exception is Bursa-CC, which is slightly cheaper than Bursa-CB but more expensive than Bursa-CA. The latter is however due to expire on April 13.

Based on the foregoing, I expect Bursa-CC to trade at a slight premium (or, gain) to its IPO price while Maybank-CD & Maxis-CD are likely to trade at a slight discount (or, loss) to their respective IPO prices.