Shares in Cathay Pacific Airways rose to a record close yesterday, forcing Societe Generale to spike an issue of call warrants on the counter.
The stock, which has been rising sharply for two weeks on rumour-driven trade, put on 5.38 per cent to close at $15.65.
'The sharp rise of the underlying shares does not offer an attractive upside potential anymore for warrant investors,' Societe Generale said.
The company had planned to issue 200 million one-year call warrants at a premium of 17.8 per cent.
Raphael Blot of the equity derivatives division said the exercise had been initiated on Tuesday and was ready for launch yesterday morning. It was pulled as the underlying shares kept rising.
He said the issue would be reconsidered if the spot price dropped back to about $14.50.
Canadian International Bank of Commerce yesterday pressed ahead with its own issue, launching 150 million call warrants against Cathay at a premium of 14.2 per cent.
