Everbright applied to extend the exercise period of Baosteel covered warrants to three months

Morning Post reporter Sun Liyun

Following Guosen Securities and Guotai Jun'an Securities, Everbright Securities formally submitted the application for issuing Baosteel covered warrants and SSE 50ETF warrants to SSE yesterday.

According to the reporter, Everbright Securities plans to issue Baosteel covered warrants on the exercise price, exercise ratio, maturity and other major terms

It is completely consistent with the existing Baosteel JTB1, but it has some innovations in some aspects. For example, Everbright has selected Bermuda style call warrants to enable warrant holders to exercise three months before the expiration date of the warrants, that is, the exercise period is from May 31, 2006 to August 30, 2006, and warrant holders can exercise on any trading day within the exercise period.

In addition, the settlement method on the exercise date is also different. When warrant holders exercise their rights, Everbright, as the issuer, has the right to choose

Market participants generally believe that issuing covered warrants to increase the supply of warrants is common abroad, which can reduce speculative factors and help prevent excessive speculation of existing warrants.

At the same time, Everbright Securities also submitted an application for issuance of SSE 50ETF warrants. The above person pointed out that the company is ready to issue warrants.

Covered warrants belong to the broad sense of warrants, which also give the holder the right to purchase a certain stock at a specific price, and are issued by a third party other than the listed company. The issuer is usually a financial institution with outstanding credit standing, or holds a large number of shares of the target company for investors to exchange at that time, or has strong financial strength as a guarantee, and can assume responsibilities to investors according to the terms listed in the covered warrants.