Hong Kong Warrants Issuance: Key Features and Specifications

Strategic Insights -

HSBC Holdings plc and Ping An Healthcare and Technology Company Limited have announced the launch of two series of call warrants, with Haitong International Securities Company Limited acting as the liquidity provider. The warrants will be listed on the Hong Kong Stock Exchange, with key features including European-style cash settlement, call type, and a maximum number of shares to which the warrants relate.

Key Takeaways:

  • Two series of call warrants were issued by HSBC Holdings plc and Ping An Healthcare and Technology Company Limited.
  • Haitong International Securities Company Limited is the liquidity provider for both series.
  • The warrants are listed on the Hong Kong Stock Exchange, with a maximum number of shares to which the warrants relate of 6,000,000 for one series and 800,000 for the other.
  • The issue size for both series is 60,000,000 and 80,000,000 warrants, respectively.
  • The exercise price for the first series is HK$44.49, and for the second series is HK$155.88.
  • The implied volatility for the first series is 34.00%, and for the second series is 84.00%.
  • The effective gearing for the first series is 22.37x, and for the second series is 5.12x.
  • The premium for the first series is 9.15%, and for the second series is 41.31%.
  • HSBC Holdings plc and Ping An Healthcare and Technology Company Limited are the underlying companies for the warrants.

Statistics:

  • Issue size: 60,000,000 and 80,000,000 warrants.
  • Maximum number of shares to which the warrants relate: 6,000,000 and 800,000 shares.
  • Implied volatility: 34.00% and 84.00%.
  • Effective gearing: 22.37x and 5.12x.
  • Premium: 9.15% and 41.31%.
  • Exercise price: HK$44.49 and HK$155.88.
  • Launch date: 11 February 2021.
  • Issue date: 17 February 2021.
  • Listing date: 18 February 2021.
  • Expiry date: 26 May 2021 and 30 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:

  • Haitong International Securities Company Limited announcement, 11 February 2021.
  • Hong Kong Stock Exchange listing details.