CIMB Investment Bank Berhad ("CIMB") launched its second base prospectus relating to the offering of structured warrants based on the revised guidelines for the issue of structured warrants issued by the Securities Commission in October 2006. This new base prospectus allows CIMB to issue structured warrants such as call warrants, basket call warrants and bull equity-linked structures on both local and foreign underlying stocks as well as stock indices.
CIMB is the top structured warrants issuer in Malaysia with 41 call warrants issued through its first base prospectus and has achieved a market share of 80% upon the expiry of its first base prospectus in 6 April 2007. On average, CIMB's call warrants turnover is estimated at 525% of the size of its issuance.
In conjunction with the launch of the base prospectus today, CIMB will launch call warrants of ordinary shares of Bursa Malaysia Berhad, Telekom Malaysia Berhad, HSBC Holdings plc and Singapore Telecommunications Limited.
Pending regulatory approvals, CIMB will also be issuing and listing zero strike call warrants which are essentially synthetic stocks. A zero strike call warrant tracks the movement of foreign underlying share price quoted on overseas exchanges. The listing of zero strike call warrants on Bursa Securities will enable investors to view indicative foreign underlying share price in Malaysian Ringgit.