Yesterday was the start of trading for Mitra OR....last day of trading is.......3 April

Last day for payment of subscription 10 April

Features of the OR.............

Renounceable rights issue of up to 157,433,598 new ordinary shares in Mitrajaya Holdings Berhad ("MHB") ("MHB" Share(s)") or ("Share(s)") ("Rights Share(s)") at an issue price of RM0.59 per Rights Share, on the basis of one (1) Rights Share for every five (5) existing MHB Shares held as at 5.00 P.M. on 26 March 2018, together with up to 78,716,799 free detachable warrants ("Warrant(s) E") and an attached Bonus Issue of up to 78,716,799 new MHB Shares ("Bonus Share(s)") on the basis of one (1) Warrant E and one (1) Bonus Share for every two (2) Rights Shares subscribed.....

This is best explained with an illustration...buying 2 OR at 38 sen

2 OR  38 sen each                              76

subscription for 2 shares 59 X 2        118

Total cost                                         194

What you get                  

Instinctively, since you know the warrants can get you more than 2 sen, you know this is a good deal for you to buy the OR., assuming assuming every thing else stays the same. 

Features of the warrant

5 years warrant, excercise price not yet determined but estimated to be 65 sen

Expected gain

assuming the warrants will be traded at 10 sen, giving a gearing of 6.4 times and a premuim of 15%

In the above example

2 shares , worth 64 sen                      128

1 Bonus share, worth                            64

                                                            192 

1 warrant worth                                     10

                                                             202

less cost   above                                  194

gain                                                          8

gain%                                                      4%

simulations

a table of expected warrant worth and percentage gain

Warrant worth                                      Percentage gain

10 sen                                                          4%

15 sen                                                           7%

20 sen                                                           9%

25 sen                                                          12%

so depends on the assumed warrant price upon listing, the gain via purchase of OR vs purchase of shares directly is from 4% to 12% on the range of warrant prices from 10 sen to 25 sen upon listing.

Reference...circular to shareholders here

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5676841

This is for illustrative purposes only...........For those thinking of taking action, you have to form your own opinion on the viability of investing in Mitra  by  looking into other sources prior to taking action.

Briefly...Mitra suffered from some cost over runs and the share have been bashed down $ 1.10 to 63 sen now, a 43% decline and it is now in the territory where long term investors may find attractive. I think its prospects look good and its earnings should improve this year over those of last year....I may do a detailed write up later.