KUALA LUMPUR: HwangDBS Vickers Research sees minimal conversion of the IJM Corp warrants in the near term as they are barely in the money at the current share price.
The research house said on Sept 9 IJM Corp had obtained the required approvals from Bursa Malaysia for its two-for-five bonus issue, and rights issue of up to 134.9 million new warrants.
IJM also announced the issue price for the IJM warrants has been fixed at 25 sen per IJM warrant and the exercise price for the IJM warrants has been fixed at RM4 for every one new IJM share.
The issue price and the exercise price for the IJM warrants were determined after taking into consideration the theoretical ex-bonus price of the IJM shares of RM4.23, which was calculated based on the 5-day volume weighted average price of the IJM shares up to and including Sept 7 of RM5.93.
The ex-date for the bonus issue and listing date of the warrants has yet to be determined.
"The warrants are barely in the money at current share price. Hence, we expect minimal conversion in the near term," it said.
HWangDBS Vickers Research has a buy on IJM at RM5.90 and a price targetof RM7
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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