Citigroup Global Markets Asia Limited Issues Warrants Announcement

Strategic Insights -

Hong Kong's stock market has seen the issuance of warrants for several prominent companies. Citigroup Global Markets Asia Limited announced the launch of warrants for five companies: Ping An Insurance (Group) Company of China, Ltd., Sands China Ltd., HSBC Holdings plc, Alibaba Group Holding Limited, and CNOOC Limited. The warrants offer investors a chance to profit from potential price increases in these companies' shares. Key features of the warrant program include a total issue size of 500 million units, a board lot of 5,000 warrants for three series and 10,000 warrants for two series, and an issue price per warrant ranging from HK$0.150 to HK$0.209.

Key Takeaways:

  • The issue size of the warrants totals 500 million units across five series, with each series linked to a specific company's shares.
  • The board lot size varies by series, ranging from 4,000 to 10,000 warrants.
  • The issue price per warrant ranges from HK$0.150 to HK$0.209, depending on the series.
  • The warrants are European-style, cash-settled, and offer a chance to profit from potential price increases in the underlying shares.

The full details of the warrant program, including the terms and conditions, are available on the Hong Kong Exchanges and Clearing Limited website.

Statistics:

  • Issue size: 500,000,000 warrants
  • Board lot size: 4,000-10,000 warrants
  • Issue price per warrant: HK$0.150-HK$0.209
  • Maximum number of shares to which the warrants relate: 10,000,000-20,000,000 shares
  • Launch date: 1 February 2021
  • Issue date: 3 February 2021
  • Listing date: 4 February 2021
  • Valuation date: Each of the five business days immediately preceding the expiry date
  • Expiry date: 28 May 2021-29 September 2021
  • Settlement date: The third CCASS settlement day after the later of the expiry date and the day the average price is determined.

Sources:

  • Citigroup Global Markets Asia Limited: Announcement of warrant issue ( available on the Hong Kong Exchanges and Clearing Limited website )
  • Hong Kong Exchanges and Clearing Limited: List of companies with warrants issued in this announcement ( available on the Hong Kong Exchanges and Clearing Limited website )
  • https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0202/2021020201648.pdf (Full announcement document)