KUALA LUMPUR, Nov 17 (Reuters) - Malaysia's state investment arm Khazanah Nasional Bhd has received a high subscription rate for its second covered warrants package, its issuing house said on Monday.
Khazanah is expected to raise up to $132 million from the sale of warrants convertible into shares of the country's top companies. The warrants will have a four-year maturity.
The sale comes hot on the heels of a similar sale of warrants in July where Khazanah raised about 204 million ringgit ($53.7 million) from the stock market.
Malaysian Issuing House Sdn Bhd said in a statement on Monday the retail offering of 2.43 million covered warrants packages was oversubscribed by 16.6 times.
The institutional offering of 21.83 million covered warrants had also been oversubscribed, it said.
Each covered warrants package comprises six warrants exchangeable to six shares of toll road-operator PLUS Expressways Bhd , two warrants exchangeable to two shares of cellular network operator Maxis Communications Bhd and one warrant exchangeable to one share of automaker Perusahaan Otomobil Nasional Bhd (PROT.KL>.
Retail investors will pay 5.30 ringgit ($1.39) for each warrants package.
The issuing house did not say how much institutional investors will pay for the warrants package, which was sold to them via a book-building.
Unlike ordinary warrants, a covered warrant entitles the holder to buy existing shares of a company at a predetermined exercise price.
Last week, Khazanah announced a high subscription rate for its offer of covered warrants packages exchangeable to shares of Telekom Malaysia Bhd , Commerce Asset-Holding Bhd and Malayan Banking Bhd .
Khazanah said on Monday institutional investors would pay 7.95 ringgit for the covered warrants and retail investors 6.40 ringgit. The final exercise price for Telekom covered warrants is 9.21 ringgit, Commerce 4.59 ringgit and Maybank 10.89 ringgit, it said.