$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): Arbitrage Opportunity?

SKBSHUT's share price has been consistently trading above its support level of RM0.655, and for the past four trading days, it has remained above RM0.675. Currently, the share price is at RM0.69, but it might face resistance at RM0.715.

Regarding SKBSHUT-WA, the warrant issued by SKBSHUT, which can be converted into the mother share before February 10, 2025, it is currently trading at RM0.215. It's important to note that it is trading at a premium.

Current Price: RM0.215
Strike Value: RM0.45
Ratio: 1:1
Premium: -0.025
Premium (%): -3.62%

The strike value is the amount needed to convert each warrant into a mother share. The calculation is as follows:

RM0.215 (Warrant Price) + RM0.45 (Strike Price) = RM0.665, whereas the current share price is RM0.69.

This indicates a discount of 3.62%, as shown by the premium calculation. However, it's important to consider conversion fees to determine whether it is worthwhile, and it is advisable to consult with your remisier about this. Although the warrant trading at a discount might seem attractive, caution is advised as there might be underlying reasons for this discount that could have been overlooked.