After Yang Zhongli's dual heroes announced the non-tradable free warrants yesterday, the stock prices both fell sharply today, dropping nearly 10% at one point.
Today, Yang Zhongli's institutions $YTL (4677.MY)$ fell 9.6% at one point, to the level of 2.15 Ringgit.
As for Yang Zhongli's electrical utilities $YTLPOWR (6742.MY)$ It then fell 8.6% to a low of 3.70 Ringgit.
Yesterday, both Yang Zhongli and Yu Xiong generously distributed "red packets" before the Chinese New Year, suggesting a 5-for-1 offer, in order to give back to the shareholders and also raise funds for expanding the business through the conversion.
The validity period of the voucher is 3 years. Among them, the exercise price per share of Yang Zhongli's institution is 1.50 Ringgit, which is about 37% discounted from yesterday's average price of 2.39 Ringgit.
As for Yang Zhongli's Electrical Utilities, the exercise price per share is 2.45 Ringgit, which is about 40% discounted from yesterday's average price of 4.06 Ringgit.
However, the relevant warrants will not be listed, traded or transferred, with a validity period of three years and can be exercised at any time before the expiry date.
If all warrants are exercised, this will increase Yang Zhongli Electrical Utilities' share capital by 20%.
Flexible 'additional shares'?
In response, Lianchang International Securities said in a research report on Friday: "We believe that these warrants are essentially a flexible 'additional shares' plan."
Under the same conditions, bonus shares have no impact on shareholder wealth. However, if the proceeds are used to fund new projects with significant returns, or increase the value of existing value-added projects...

$YTL (4677.MY)$
Wah ! congratulations to YTL die hard fan !
wake up in the morning, no weekday blue 💙

$CARLORINO (0335.MY)$ Cracked, cracked, hit by drawing

$MAYBANK (1155.MY)$ why keep dropping? bad quarter result next week?

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