What is a warrant on Pluang?

A warrant on Pluang gives its holder the right — not the obligation — to buy a company's shares at a fixed strike price, valid for several years from issuance, far longer than the days-to-weeks lifespan of a right. Companies issue warrants during an IPO or rights issue as a bonus to attract investors, rather than selling them separately upfront. On Pluang, warrants are listed as their own tradeable instrument with a "-W" ticker suffix (e.g. BBCA-W), separate from the underlying stock. You have two options: exercise it to buy shares at the fixed strike price, or sell the warrant itself in the market while it's still trading. Whether exercising makes sense depends on where the market price sits relative to the strike price.

Key things to know about warrants on Pluang:

• Long-dated right: warrants typically expire several years after issuance, far longer than rights (which last days to weeks)
• Fixed strike price: the price at which you can buy the underlying stock if you exercise — set when the warrant is issued
• Issued as a bonus: warrants are usually given to investors during an IPO or rights issue, not sold separately at first
• Ticker format: warrants are listed as a separate ticker with the suffix "-W" (e.g. BBCA-W for Bank Central Asia warrants)
• Two paths: you can exercise the warrant (buy shares at the strike price) or sell the warrant itself in the market

Related questions:

Q: How is a warrant different from a right?
A warrant is much longer-dated (years vs days/weeks) and usually issued as a bonus during IPOs or rights issues, rather than tied to an immediate capital raise. A right is a short-window pre-emptive entitlement offered directly to existing shareholders at a discount.

Q: What is the strike price of a warrant?
The fixed price to buy the underlying stock if you exercise, set once at issuance and never changed. If the market price is above the strike, exercising is worthwhile; if below, it means paying more than the stock is currently worth.

Q: Can a warrant become worthless?
Yes. If the market price stays at or below the strike price through expiry, there's no economic reason to exercise, and the warrant simply expires with no value — a normal, expected outcome for warrants that never move "in the money."

Q: Where do I see warrants in the Pluang app?
Warrants appear under the Exercise Rights & Warrants page (reachable via a Portfolio page banner) and on the Corporate Action ADP screen. Holdings also show directly in your Indonesian Stocks portfolio with the "-W" suffix.