Damansara Realty lowers exercise price for proposed bonus warrants
KUALA LUMPUR (Sept 26): Damansara Realty Bhd announced today that it has decided to revise the exercise price of its proposed bonus warrants to 58 sen apiece, from 82 sen previously.
The property player had proposed the three-year warrants — on the basis of one warrant for every Damansara Realty share held — on April 15, 2016.
Its initial exercise price of 82 sen was at a 4.46% premium to the volume-weighted average market price (VWAMP) of its shares of 78.5 sen for a 45-day period ended April 14, 2016.
In a filing today, the adviser for the proposed bonus warrants, Kenanga Investment Bank Bhd, said the new exercise price represents a 5.84% premium to the VWAMP for the 45-day period ended Sept 25, 2017 of 54.8 sen.
"The new exercise price of the warrants of 58 sen was fixed after taking into consideration, amongst others, the prevailing market conditions and the historical volatility of the underlying Damansara Realty Bhd shares since April 15, 2016," it added.
At 2.45pm, shares of Damansara Realty were 7.96% or 4.5 sen higher at 61 sen for a market capitalisation of RM182.53 million. Presently, the counter had lost some 31.46% or 25 sen from its closing price of 86 sen on April 15, 2016, when the bonus warrants issue was first proposed. — theedgemarkets.com