I have posted several times about the different traits of a Warrant here. There are cases where warrants act as a sweetener for the shareholders to subscribe to the rights. Warrants can also be used as a tool for companies to raise more funds - not immediate but within the exercise-able period. This is especially true when the warrants is in the money. Usually the exercise period for warrants in Malaysia is either 5 years or 10 years, hence allowing the shareholders time to exercise it.
If it is for the management and controlling shareholders tool as a play, they may issue the warrants to be used as a unit just for sale. Why would one have more dilution to their stocks if they do not meant to exercise it? In this cases, one can see that the warrants have very little value but since it is tradeable and usually it is low in price. Recently, with the trading charges so low, at every 0.5sen, the traders are already profiting. That's precisely what I was pointing at in one of the articles. If the warrants in the eyes of the shareholders is not worth the money, and they do not want to cough up more to pick up more shares, they usually sell. Let the fools have it, why not!
In the case of Keuro's warrants, I believe it is used as a sweetener as well as a tool to raise additional funds - funds that Keuro does not need now but over the next 2 years it will need. As most know Keuro is raising funds for its WCE project which is costing RM5.9 billion now. Usually, these projects the cash needed are not immediate but will be needed on progress over the next 4 -5 years of the project duration. This is precisely why the exercise period is 2 years and not 5 years as if it is 5 years, it may be too late to raise the cash anyway. In 5 years time, Keuro does not need the cash. It needs it earlier. This is also probably why the exercise price is put at a lower price - RM1.18, closer to the parent price.
Whether the warrants will be exercised will depend on whether it is in the money. As it is the exercise price is RM1.18. Today, Keuro's price RM1.10 where it is pretty close to the exercise price.