KUALA LUMPUR (Sept 27): Maybank Investment Bank Bhd is issuing 15 new European style cash-settled call warrants which will be listed tomorrow (Sept 28, 2018), with an issue size of 100 million each.

According to a statement today, it said this tranche of call warrants is primarily focused on the oil and gas (O&G) sector, with a selection of underlying shares from across the entire O&G value chain.

The new call warrants are over ordinary shares of Bumi Armada Bhd (“ARMADA-C46”), Cahya Mata Sarawak Bhd (CMSB-C14), Dialog Group Bhd (“DIALOG-C36”), Hengyuan Refining Company Bhd (HENGYUAN-C5), Hibiscus Petroleum Bhd (HIBISCS-CM), Malakoff Corp Bhd (MALAKOF-C17), My E.G. Services Bhd (MYEG-C50), Petron Malaysia Refining & Marketing Bhd (PETRONM-CS), Pos Malaysia Bhd (POSC23), Press Metal Aluminium Holdings Bhd (PMETAL-C18), Sunway Construction Group Bhd (SUNCON-CU), Telekom Malaysia Bhd (TM-C33), UEM Sunrise Bhd (UEMSC64), Velesto Energy Bhd (VELESTO-C26) and Vitrox Corp Bhd (VITROX-CM).

“Crude oil prices have performed strongly, appreciating almost 40% since the start of the year,” Maybank IB said.

Maybank IB Research remains positive on the sector and expects current levels of crude oil to bode well for capital expenditure spending, which has been on the rise, it said.

Nevertheless, Maybank IB Research noted volatility is likely to remain heightened against the backdrop of the trade war and geopolitical concerns.

“Sophisticated investors who are bullish on this sector may capitalise on possible new opportunities by investing via the newly-issued warrants,” Maybank IB said.

The call warrants have the following gearings, ARMADA-C46 (3.8 times), CMSB-C14 (3.22 times), DIALOG-C36 (4.55 times), HENGYUAN-C5 (2.22 times), HIBISCS-CM (3.28 times), MALAKOF-C17 (6.13 times), MYEG-C50 (2.73 times), PETRONM-CS (2.91 times), POS-C23 (3.78 times), PMETAL-C18 (4.05 times), SUNCON-CU (4.02 times), TM-C33 (4.24 times), UEMS-C64 (2.87 times), VELESTO-C26 (3.53 times) and VITROX-CM (4.35 times).

The tenure for the 15 call warrants listed above is approximately nine months, Maybank IB added.