Maybank issues AirAsia, AirAsia X call warrants as oil price falls

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KUALA LUMPUR (Jan 14): Maybank Investment Bank Bhd (Maybank IB) has issued eight new call warrants of a 100 million units each, including over shares of budget airlines AirAsia Bhd and AirAsia X Bhd.

In a statement today, Maybank IB said with the price of Brent crude oil falling below US$60 (RM215.87) per barrel on Jan 2, 2015, one of the key beneficiaries of lower crude oil prices is the airline industry, where jet fuel cost constitutes a significant portion of direct cost.

"Airlines can then lower jet fuel surcharge which is expected to spur travel demand in spite of the implementation of goods and services tax (GST)," Maybank IB said.

Besides the low-cost carriers, Maybank IB also issued call warrants over shares of Coastal Contracts Bhd, Inari Amertron Bhd, Malaysian Bulk Carriers Bhd, MSM Malaysia Holdings Bhd, Pos Malaysia Bhd and Scomi Energy Services Bhd.

Maybank IB said the eight schemes were European-style cash-settled call warrants. The warrants were listed on Bursa Malaysia today (Jan 14).

The tenure of the eight structured warrants is approximately 12 months.