KUALA LUMPUR (July 18): Maybank Investment Bank Bhd (Maybank IB) is issuing eight new call warrants (CWs) over ordinary shares of Nestlé (Malaysia) Bhd, AEON Co (M) Bhd, Padini Holdings Bhd, Dutch Lady Milk Industries Bhd, FGV Holdings Bhd, Sime Darby Plantation Bhd, Top Glove Corp Bhd and Genting Bhd.
The call warrants will be listed tomorrow, with an issue size of 100 million each.
"This tranche is being offered in response to recent activity in the consumer sector, arising from various macro events affecting Malaysia’s economy," Maybank IB said in a statement today.
The investment bank expects a boost in consumer spending, as a response to the zerorisation of the goods and services tax and stabilisation of fuel prices via government subsidies.
"Furthermore, Budget 2018 has already incorporated measures to stimulate consumer spending, namely the “Cost of Living Aid” initiative, Hari Raya bonuses for civil servants and pensioners, as well as cuts in personal income tax.
"On the economic front, Malaysia’s underlying economic fundamentals remain favourable, with sustained trade and current account surpluses backed by rising crude oil prices," the statement added.
The CWs have gearings ranging from 4.05 times to 9.76 times. The tenure is eight months.