Credit Suisse Issues Warrants for China International Capital Corporation, Weimob Inc., and HSBC Holdings plc

Strategic Insights -

Credit Suisse (Hong Kong) Limited has announced the issuance of warrants for three major companies: China International Capital Corporation Limited, Weimob Inc., and HSBC Holdings plc. The warrants are European-style cash-settled and have varying exercise prices, entitlements, and issue sizes.

The warrants for China International Capital Corporation Limited have an issue size of 70,000,000, with 10 warrants per entitlement, and an exercise price of HK$22.500. The warrants for Weimob Inc. have an issue size of 150,000,000, with 50 warrants per entitlement, and an exercise price of HK$22.270. The warrants for HSBC Holdings plc have an issue size of 100,000,000, with 10 warrants per entitlement, and an exercise price of HK$53.050.

Key Takeaways:

  • The warrants for China International Capital Corporation Limited have an implied volatility of 69.10% and an effective gearing of 4.15x.
  • The warrants for Weimob Inc. have an implied volatility of 105.13% and an effective gearing of 1.57x, but are expected to provide a gearing of 2.29x.
  • The warrants for HSBC Holdings plc have an implied volatility of 32.61% and an effective gearing of 8.00x, but are expected to provide a gearing of 29.83x.
  • The launch date for all series of warrants is March 26, 2021, with an issue date of March 30, 2021, and a listing date of March 31, 2021.
  • The expiry dates for the warrants are August 24, 2021, November 23, 2022, and September 23, 2021, for China International Capital Corporation Limited, Weimob Inc., and HSBC Holdings plc, respectively.
  • The warrants are cash-settled, with a settlement currency of Hong Kong dollars.

Statistics:

  • Issue size: 70,000,000, 150,000,000, and 100,000,000 warrants for China International Capital Corporation Limited, Weimob Inc., and HSBC Holdings plc, respectively.
  • Exercise prices: HK$22.500, HK$22.270, and HK$53.050 for the respective companies.
  • Implied volatilities: 69.10%, 105.13%, and 32.61% for the respective companies.
  • Effective gearings: 4.15x, 1.57x, and 8.00x for the respective companies.
  • Gearing: 11.56x, 2.29x, and 29.83x for the respective companies.
  • Launch date: March 26, 2021.
  • Issue date: March 30, 2021.
  • Listing date: March 31, 2021.
  • Expiry dates: August 24, 2021, November 23, 2022, and September 23, 2021, for China International Capital Corporation Limited, Weimob Inc., and HSBC Holdings plc, respectively.
  • Settlement date: The third CCASS Settlement Day after the later of the expiry date or the day on which the average price is determined.

Sources:

  • CREDIT SUISSE (HONG KONG) LIMITED. (n.d.). Warrants Stock code 18665 18670 18673. Retrieved from [.reference]