10 May 2013 – Sinarmas Land Warrants eW151118 (Discount to mother share)

The strange case of Sinarmas Land Warrants eW151118 – The warrants continue to trade at a discount to the mother share.

Sinarmas Land is trading today at this time, at 50 – 50.5 cents.   The warrants are trading at 34.5 cents – 35 cents (the exercise price being 10 cents).

Based on the conversion price, the warrants are currently trading at a discount of about 11.88%.

One reason for this discount could be that the warrants are European-style, meaning that they can only be converted at the expiry date.   This is in contrast with Amercian-styled warrants which can be converted at any time.

Anyway, with such a discount, I picked up some warrants today by buying in at 34.5 cents.   I already own the mother shares.  No harm in adding on some warrants.

On news out from last night, Sinarmas Land is planning an initial public offering of a flagship Indonesian project that could raise up to US$300 million 

  See: http://www.sinarmasland.com/site/?pg=newsDetail&detail=292

 

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