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Investors showed a healthy appetite for the 10 structured warrants that made their debut yesterday on Bursa Malaysia, taking up 76 million units, or 7%, of the total volume traded.

Among them, Axiata-CC was the most actively traded in tandem with its underlying shares, Axiata Group Bhd.

Axiata-CC rose more than 20% to 18.5 sen from its offer price of 15 sen each while Axiata shares gained 13 sen, or 4%, to RM3.06 per share.

Gamuda-CI gained over 20% to 26.5 sen from its issue price of 22 sen. Gamuda Bhd, meanwhile, closed unchanged at RM3.34.

HKEX-H1, issued by AmInvestment Bank Bhd, is the first put warrant to be issued on Bursa. The underlying stock for the put warrants is the Hong Kong Exchanges and Clearing Ltd (HKEX).

AmInvestment also issued the call warrants on HKEX, as the pair of call and put would allow investors to take a position on the potential upsides or downsides of HKEX.

The other warrants listed yesterday were based on local stocks that have large capitalisations.

A head of research of a local brokerage said investors were likely riding on the underlying stock since entry via the structured warrants was cheaper than buying into the actual shares.

He cautioned, however, that investors might “get themselves caught” if they’re not fully aware of the mechanism of such products.

Investors might have to be satisfied with a smaller profit as the gains in structured warrants were unlikely to be of the same proportion as the underlying shares, he added.

An institutional dealer with a foreign house said interest on structured warrants was subject to market conditions and the performance of the underlying stock.

“Retail investors still need more exposure to trading in such instrument as some are not familiar with the nature of structured warrants,” he said.

Another dealer concurred, saying “retail investors are unsure of how to trade in structured warrants”, which was why trading volume remained moderate to thin for such instrument.

“Institutional and sophisticated investors are mostly the ones trading in these (warrants),” he added.

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Hap Seng Realty (KL City) Sdn Bhd, a wholly-owned subsidiary of Hap Seng Consolidated Bhd, has acquired a 50% stake in Inverfin Sdn Bhd, the owner of Menara Citibank in Jalan Ampang, Kuala Lumpur.

According to a company filing with Bursa Malaysia yesterday, the 50% adjusted net asset value of Inverfin as at Dec 31, 2008 was RM235.39mil.

The vendors are CapitaLand Ltd that holds 30% in Inverfin and Amsteel Corp Bhd, which has a 20% stake.

Menara Citibank, previously known as Menara Lion, is parked under Inverfin. The remaining 50% stake in the company is held by Menara Citi Holding Co Sdn Bhd.

CapitaLand’s 30% stake comprises three million ordinary shares while Amsteel holds 2,000,001 ordinary shares in Inverfin.

According to Hap Seng Consolidated group managing director Datuk Edward Lee Ming Foo, the purchase was in line with the company’s corporate strategy to expand the its property holding and development division.

“Demand for prestigious office space in the heart of the Golden Triangle has not waned despite the global economic downturn.

“Based on our experience in the market, we expect demand to remain robust, if not improve, while supply is naturally kept limited in super-prime areas such as these,” he said in a statement yesterday.

The 50-storey Menara Citibank has a net lettable area of about 68,000 sq m.

“The unique propositions of Menara Citibank offer potential for rental growth as well as capital appreciation.

“This will bode well for the group in terms of sustained recurring income and long-term value for its property division,” Lee added.

Menara Citibank will be the second major acquisition by Hap Seng.

In 2004, it bought the 22-storey MUI Plaza from the MUI Group. The company spent some RM60mil on the purchase, including refurbishing the building.

A CapitaLand statement said the consideration of RM145.1mil for its Inverfin stake would be wholly satisfied in cash and was subject to a post-completion adjustment of the net asset value of Inverfin at the completion date, which is expected to be in November.

It further said the completion of the sale was subject to the fulfilment of certain conditions set out in the agreement. Upon completion, Inverfin will cease to be an associated company of CapitaLand.

In response to queries from StarBizWeek, a CapitaLand spokesman said the divestment of the company’s stake in Menara Citibank was in line with its proactive portfolio management, which included asset enhancement and strategic investment and divestment decisions.

“Malaysia remains one of CapitaLand’s key markets in South-East Asia and the company continues to have a presence in the commercial, retail, residential, serviced residence and real estate financial services sectors in the country.

“The real estate market has immense underlying potential. The Government’s pro-business policies have presented many opportunities for international real estate companies like CapitaLand to leverage on its multi-sector and multi-local strategy.

“Riding on this positive backdrop, CapitaLand will continue to strengthen its footprint in Malaysia,” he added.

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Reuters reported that Maxis Communications, Malaysia’s top mobile operator, has chosen Goldman Sachs, Credit Suisse and CIMB to advise the firm on a planned US$2 billion listing in Kuala Lumpur, two sources said today.

The listing is likely to happen by the end of this year and the company may raise more than US$2 billion in its public offering, one of the sources said.

The move comes after Malaysia’s Prime Minister Datuk Seri Najib Tun Razak said last month he had asked Maxis Communications Bhd to re-list on Bursa Malaysia to boost liquidity and draw in investors to Southeast Asia’s most laggard stock market so far this year.

Maxis, Goldman Sachs, Credit Suisse and CIMB declined to comment on the IPO plans.

Maxis was de-listed by reclusive tycoon Ananda Krishnan, who controls 75 per cent of Maxis, in 2007. The rest is owned by state-owned Saudi Telecom Co Ltd

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