Hong Kong Warrant Issuance: BYD, Alibaba Health, and Cathay Pacific Stock Options

Strategic Insights -

Hong Kong's Haitong International Securities Company Limited has issued warrants on various stocks, including BYD Company Limited, Alibaba Health Information Technology Limited, and Cathay Pacific Airways Limited. The issue includes four series of call and put warrants, with different terms and conditions for each. The warrants are listed on the Hong Kong Stock Exchange, with a total issue size of 100,000,000 to 240,000,000 warrants, depending on the series.

Key Takeaways:

  • The warrants are issued for four different stocks: BYD Company Limited, BYD Electronic (International) Company Limited, Cathay Pacific Airways Limited, and Alibaba Health Information Technology Limited.
  • The issue size of warrants ranges from 60,000,000 to 240,000,000, depending on the series.
  • The warrants are listed on the Hong Kong Stock Exchange, with a launch date of June 12, 2020, and an issue date of June 18, 2020.
  • The warrants expire on different dates, ranging from November 17, 2020, to April 27, 2021.
  • The implied volatility of the warrants ranges from 51.00% to 74.00%, with effective gearing of 2.92x to 4.03x.
  • The premium of the warrants ranges from 28.99% to 54.58%, with a gearing of 6.64x to 10.33x.

Statistics:

  • Issue size: 60,000,000 to 240,000,000 warrants
  • Launch date: June 12, 2020
  • Issue date: June 18, 2020
  • Expiry dates: November 17, 2020, to April 27, 2021
  • Implied volatility: 51.00% to 74.00%
  • Effective gearing: 2.92x to 4.03x
  • Premium: 28.99% to 54.58%
  • Gearing: 6.64x to 10.33x

Sources:

  • Haitong International Securities Company Limited announcement dated June 12, 2020
  • Hong Kong Stock Exchange listing rules and regulations
  • BYD Company Limited, BYD Electronic (International) Company Limited, Cathay Pacific Airways Limited, and Alibaba Health Information Technology Limited financial statements