Thursday, March 08, 2007

3 new CWs to be listed on Monday- BJToto-CB, Genting-CC & TM-CD

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



Since the fixing of the exercise price for this batch of CWs was done on February 26, one day before the market begun its sharp fall, their valuation is not in line with their underlying share price as reflected by their high premium (ranging from 18-25%) or fairly substantial negative intrinsic value. Unless their underlying share price rises substantially tomorrow (say, by 10%), this batch of CWs will likely to trade at prices below their IPO price, except for the first 5 minutes of trading. If you have "successfully' applied for them, you may do no better than selling them off at their IPO price, if that is possible.

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