ROBERT Fleming in the United Kingdom launched its 16th covered warrant issue yesterday on Hongkong Electric shares.
The British merchant bank, which owns Jardine Fleming equally with Jardine Matheson, issued 40 million warrants at $3.65 each after the market closed in Hongkong.
With an exercise price of $17.30, compared with the close of Hongkong Electric at $17.40, the issue was made at a 20.4 per cent premium and a gearing of 4.8 times.
Yesterday's issue from the controlling shareholders of Hysan Development was undertaken on an implied volatility of 32 per cent.
Mr Richard Williams, of Robert Fleming global derivatives in London said: ''Hongkong Electric has not been a particularly strong performer of late.
''The feeling is that there is some upside in the stock and it is Jardine Fleming's favourite and recommended buy in the utility sector.