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