Barefoot Investor: Wijaya Baru warrants jump, though out-of-money

The securities of WIJAYA BARU GLOBAL BHD and the warrants rose in active trade on Monday, July 25, though there was no positive news from the  timber-property based company.

At 4.35pm, the shares rose 9.5 sen to 74.5 sen with 13.60 million shares done.

The warrants, Wijaya-WA climbed 4.5 sen to 16 sen and it was the most active with 29.24 million units done.  The warrants are out-of-the money.

The FBM KLCI fell 4.92 points to 1,560.14. Turnover was 760.53 million shares valued at RM1.15 billion. There were 173 gainers, 543 losers and 266 stocks unchanged.

The warrants, issued in September 2007, expire in September 2012. The conversion ratio is one warrant for each share. The exercise price is RM1.25.

The warrants were issued for free to the subscribers of renounceable rights issue of RM110.36 million nominal value of five-year 7% irredeemable convertible unsecured loan stocks (ICULS) at 100% of its nominal value on the basis of one free detachable warrants for every RM1 rights ICULS subscribed for.

The issue price for the ICULS was RM1 and the exercise price was RM1.25. The loan stocks expire in September 2012.

In the quarter ended March 31, 2011, it posted pre-tax loss of RM909,000 on the back of RM124,000 in revenue. However, share of net results of an associated company of RM4.52 million nudged it into the black with net profit of RM3.22 million.(


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