KIS to sell covered warrants for four large-cap stocks

KIS to sell covered warrants for four large-cap stocks

HÀ NỘI — KIS Việt Nam Securities Co (KIS) will issue covered warrants that underline shares of four large-cap firms – steel maker Hòa Phát Group (HPG), consumer staple firm Masan Group Corporation (MSN), real estate-retail-tech giant Vingroup (VIC) and its retail arm Vincom Retail (VRE).

All four covered warrants will have a term of three months, with a conversion ratio of two to one for HPG and VRE and five to one for MSN and VIC.

The prices of the four covered warrants will be  三0 per cent higher than the market price of the underlying stocks.

After the offering process, all of the covered warrants will be deposited at the Việt Nam Securities Depository Centre (VSD) by the issuing company. The non-distributed covered warrants will be held by KIS in its proprietary trading account and be freely traded. After that, covered warrant codes will be listed on the Hồ Chí Minh Stock Exchange.

A covered warrant is a security that gives the holder the right to buy or sell an underlying asset at a specified price on or before a specified date.

Underlying assets can be a single stock, a basket of stocks, an index, a co妹妹odity or a currency. Covered warrants have been listed and traded on the Hồ Chí Minh Stock Exchange since June  二 八.

The fourth securities product, after stocks, fund certificates, bonds and futures, is expected to provide investors with more options and draw foreign capital in listed companies as there is no foreign ownership limit on these products.

During the first one to two weeks of trading, covered warrants received a positive response from investors; however, its trading soon slowed down and liquidity dropped. Since the inception of covered warrants in Việt Nam, their total trading volume has reached more than  六 七. 七 million, worth VNĐ 二 二0. 八 billion (US$ 九. 四 million).

There are currently  一 六 covered warrant codes being traded on the stock market, underlying the stock codes of FPT Corporation (FPT), Hòa Phát Group (HPG), Military Bank (MBB), Mobile World Group (MWG), Phú Nhuận Jewellery (PNJ) and Vinamilk (VNM), with maturity of three to six months.

Most of the listed covered warrants have higher prices than when they were initially released.

For example, the covered warrants of Mobile World Group (MWG) are on an upswing. CMWG 一 九0 一 issued by BIDV Securities Co (BSC) now fetches nearly four times its issuing price. CMWG 一 九0 二 issued by VNDirect Securities Co (VNDS) is priced  二 三 四 per cent higher. The increases for CMWG 一 九0 三 issued by HCM City Securities (HSC) and CMWG 一 九0 四 issued by SSI Securities (SSI) are  一 二 八 per cent and  一 五0 per cent, respectively.

KIS is one of eight securities companies qualified to issue covered warrants, along with SSI Securities Inc (SSI), HCM City Securities Corp (HSC) and Việt Capital Securities Corp (VCSC). — VNS