Tan Chong International Sells Call Options and Listed Securities: Key Details for Investors
Tan Chong International Sells Call Options and Listed Securities: Detailed Breakdown and Potential Share Price Impact
Key Highlights from the Supplemental Announcement
- Sale of Call Options: Tan Chong International Limited, through its wholly-owned subsidiary Redcliffe Investments, executed a series of call option sales with Nomura Singapore across multiple trade dates in August and September 2025.
- Disposal of Listed Securities: The transactions are categorized as discloseable under Hong Kong exchange rules, indicating their materiality and potential impact on the company’s financials.
- Strike Prices and Premiums: The strike prices were set at premiums ranging from 105% to 110% above the relevant spot prices on the respective trade dates, with significant premiums received for each option contract.
Full Transaction Details
Tan Chong International Limited announced the sale of call options by its subsidiary Redcliffe Investments to Nomura Singapore. These options were sold at the following dates and terms:
| Trade Date |
Strike Price (JPY) |
HKD Equivalent |
Strike Price as % of Spot Price |
Premium Received (JPY) |
HKD Equivalent |
| 8 August 2025 |
3,333 |
~HK\$175 |
110% |
8.2 million |
~HK\$0.43 million |
| 4 September 2025 |
3,171 |
~HK\$167 |
105% |
24.2 million |
~HK\$1.27 million |
| 8 September 2025 |
3,264.45 |
~HK\$172 |
105% |
12.4 million |
~HK\$0.65 million |
| 9 September 2025 |
3,324.15 |
~HK\$175 |
105% |
13.0 million |
~HK\$0.68 million |
The company used an exchange rate of HK\$1 = JPY19 for illustrative purposes. Investors should note this is for reference and may differ from actual settlement rates.
Why Investors Should Pay Attention
- Potential Impact on Earnings: The receipt of option premiums could provide a boost to near-term earnings, depending on the size of the underlying positions and the overall investment strategy.
- Market Sensitivity: The company’s active management of listed securities—especially through derivative transactions—may signal a shift in investment strategy, risk management approach, or a view on market volatility, all of which could influence share price volatility.
- Disclosure Status: The fact that these are discloseable transactions signals that they are material enough to warrant investor attention and regulatory scrutiny.
- Currency Risk: The use of JPY/HKD for these trades introduces an FX element that could affect realized profits or losses, depending on currency movements.
Board and Management
The announcement was authorized by the Board of Directors, with Joint Company Secretaries Teo Siok Ghee and Liew Daphnie Pingyen signing off. The board comprises both executive and independent non-executive directors, reflecting a governance structure that investors may wish to review in light of these transactions.
Conclusion: Share Price Sensitivity
This series of option sales and the disposal of listed securities could be price sensitive, as they may impact Tan Chong International’s financial performance and signal the company’s outlook on its investments. Investors should closely watch for further disclosures or results updates that quantify the impact of these transactions on the company’s earnings and balance sheet.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information is based on company disclosures as of the date indicated and may be subject to change.
View TCIL HK$ Historical chart here
