Goldman Sachs Issues Warrants for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited

Strategic Insights -

The Hong Kong Stock Exchange has listed the following warrants issued by Goldman Sachs (Asia) L.L.C. for four prominent companies: HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited. These warrants offer investors the opportunity to speculate on the performance of these companies. The warrants are listed under stock codes 13023, 13024, 13025, and 13027, with the liquidity provider being Goldman Sachs.

Key Takeaways:

  • The warrants have an issue size of 80 million, 80 million, 150 million, and 150 million, respectively, for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited.
  • The warrants are European style cash settled and have a board lot of 4,000, 1,000, 10,000, and 10,000, respectively, with an issue price of HK$ 0.150, HK$ 0.150, HK$ 0.163, and HK$ 0.269 per warrant, respectively.
  • The exercise price for call warrants is HK$ 29.950, HK$ 210.300, HK$ 426.080, and HK$ 2.930 for HSBC Holdings plc, Alibaba Group Holding Limited, Tencent Holdings Limited, and Bank of China Limited, respectively.
  • The warrants are listed on the Hong Kong Stock Exchange and have a launch date of 29 May 2020, with an issue date of 4 June 2020 and a listing date of 5 June 2020.
  • The valuation date for all series is the five business days immediately preceding the expiry date, with expiry dates of 23 November 2020, 23 December 2020, 24 March 2021, and 18 November 2020 for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited, respectively.
  • The implied volatility, effective gearing, gearing, and premium for the warrants are 41.82%, 4.68x, 23.90x, 20.64% for HSBC Holdings plc; 30.65%, 6.14x, 18.87x, 8.83% for Bank of China Limited; 30.57%, 5.42x, 11.92x, 16.62% for Alibaba Group Holding Limited; and 28.62%, 7.32x, 15.26x, 10.38% for Tencent Holdings Limited.

Statistics:

  • Issue size: 80 million, 80 million, 150 million, and 150 million for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited, respectively.
  • Board lot: 4,000, 1,000, 10,000, and 10,000 for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited, respectively.
  • Issue price: HK$ 0.150, HK$ 0.150, HK$ 0.163, and HK$ 0.269 for HSBC Holdings plc, Bank of China Limited, Alibaba Group Holding Limited, and Tencent Holdings Limited, respectively.
  • Exercise price: HK$ 29.950, HK$ 210.300, HK$ 426.080, and HK$ 2.930 for HSBC Holdings plc, Alibaba Group Holding Limited, Tencent Holdings Limited, and Bank of China Limited, respectively.

Sources:

  • Goldman Sachs (Asia) L.L.C. (2020). Warrants Announcement. Retrieved from https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0601/2020060102755.pdf