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SCIB still has upsides potential. Share price can be expected to rally further when the free warrant ex-date is announced and again towards the ex-date
All shareholders will be entitled to one free warrant for every two shares held on 5PM, 3rd of Feb. Nobody can predict the future price after ex-date but judging from Kpower after ex-date, the share price continued to rise and seems like nothing can stop the bullish momentum. My opinion is that share should consolidate for a while due to lack of new catalyst until the next QR end of Feb.
The exercise value has already been fixed at 1.77. Assuming the exercise ratio is 1:1, the fair value of the warrant today is with mother share of RM2.00 is RM2.00 - RM1.77 = RM0.23 with zero premium. Although the actual share price and premium is determined by the market.
I don’t quite understand, is there any formula for warrant price? Or it will be determined by the market once it is released to the market? For SCIB warrant
Thanks
Mother market value RM3.00 minus Exercise value RM1.77 = RM1.23. As the share price continue to increase, the warrant fair value will increase accordingly. In fact at higher rate in terms of percentage due to higher gearing.
Ex-date is 2nd Feb but entitlement of lodgment date on 3rd of Feb, 5PM. Please refer to the announcement SCIB bonus issue entitlement. Don't make a mistake in selling too soon.
@ES Teo Yes, KPower-WA now in excess of 20% premium. SCIB-WA will be even much more attractive and valuable due to lower excercise value plus we get 1 free warrant for every 2 shares
Just confirmed with my broker, DC TY and Yip Jacky are correct. Mother stock will be adjusted upon ex-date. The adjustment amount is exactly what you will get back in the form of warrant. Mother share may be sold on ex-date without affecting warrant entitlement. Cheers!
