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Banking industry

Adjustments to Single Stock Derivative Warrants in Hong Kong

Strategic Insights

— 1 min read

J.P. Morgan Structured Products B.V, the issuer of single stock derivative warrants on the Hong Kong Company, has announced adjustments to these warrants following a rights issue of the Company. The adjustments will take effect from 26 January 2022. These adjustments are necessary due to the Company's announcements on 26 February 2021 and 14 January 2022 regarding a rights issue, which will increase the share count of the Company. As a result, the Issuer will make adjustments to the unexpired single stock derivative warrants on the Company's shares.

Key Takeaways:

  • The adjustments to single stock derivative warrants will take effect from 26 January 2022.
  • The adjustments are necessary due to the rights issue announced by the Company on 26 February 2021 and 14 January 2022.
  • The adjusted Entitlement will be 1.022 Shares.
  • The existing Exercise Price will be adjusted by the reciprocal of the Adjustment Factor.
  • After the adjustments, the adjusted Exercise Price and the adjusted Entitlement of the Warrants will be calculated using the Adjustment Factor.
  • The issuer, J.P. Morgan Structured Products B.V, will make the necessary adjustments to the warrants.

Statistics:

  • 1.5 H rights shares will be offered for every 10 existing ordinary H shares of the Company.
  • The subscription price for the rights issue is HK$17.67 per H rights share.
  • The adjustments to the warrants will take effect from 26 January 2022.
  • The adjusted Entitlement will be 1.022 Shares.
  • The Adjustment Factor will be used to calculate the adjusted Exercise Price and the adjusted Entitlement of the Warrants.

Sources:

  • Announcement by J.P. Morgan Structured Products B.V (https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0125/2022012500968.pdf)

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