Nvidia's assets appreciated more than Bitcoin this year, with HEXA making over 0.1 billion MYR in cash.
26/12/2023
AI god stock NVIDIA's performance in the stock market this year has surpassed bitcoin, becoming the best performing asset project. Malaysian listed company HEXZA (3298) became a big winner by buying NVIDIA stocks.
NVIDIA's stock price more than doubled from January to May, also being the company with the best Sharpe ratio in 2023.
NVIDIA has been listed as a success story in the stock market this year, with its share capital more than doubling, driving the market cap to exceed a coveted 1 trillion US dollars (about 4.6 trillion Malaysian Ringgit), making it the most valuable chip manufacturer.
HEXZA, with chemical production as its core business, took advantage of the high NVIDIA stock price to arbitrage, selling shares twice for a total cash out of 60 million Ringgit; HEXZA plans to sell a further 20,000 shares of NVIDIA stock in the next twelve months, expecting to cash out another 47.03 million Ringgit.
In other words, HEXZA can cash out over 0.1 billion Ringgit just by selling off NVIDIA stocks, which will greatly assist the company's cash flow.
HEXZA announced in mid-December its plan to publicly sell 0.02 million shares of NVIDIA on the Nasdaq exchange in a single or staggered manner.
Based on NVIDIA's lowest stock price of $455.03 and highest stock price of $504.09 in the past month, the sale of 0.02 million shares is estimated to yield a minimum of 9.1 million USD or 42.45 million Ringgit, with a maximum potential of 10.08 million USD or 47.03 million Ringgit.
In the best case scenario, Xizze plans to use 20 million ringgit from the proceeds of the divestment to purchase new machinery and equipment, 26.83 million ringgit for operational and investment capital, and the remaining 0.2 million ringgit to cover the expenses of the divestment activity.
The company acquired Nvidia shares at an average price of $93.15 per share between June 9, 2017 and February 27, 2023; at the current price of $488.90 per share, it has increased by over 8 times.
Xizze has sold a total of 0.02 million 8000 shares of Nvidia twice this year, realizing a total of 58.87 million ringgit. The company has not disclosed how many Nvidia shares it still holds after selling the mentioned 0.02 million shares.
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