How will the separate trading of Class A shares and warrants affect the liquidity and price discovery of FIGXU units?

The split‑trading structure will channel most of the day‑to‑day volume away from the “FIGXU” unit ticker into the two new symbols – FIGX (Class A ordinary shares) and FIGXW (whole warrants). As a result, the unit’s order‑book will become thinner, with lower average daily volume and wider bid/ask spreads. Thin‑filled unit trades tend to be more “price‑discovery‑driven” than “liquidity‑driven,” meaning that each transaction will move the unit price more than before, creating a higher‑volatility environment for any residual unit‑only positions (e.g., investors who have not yet split their holdings).

Conversely, the newly listed shares and warrants will inherit the bulk of the original IPO liquidity, allowing a more efficient, transparent price‑formation process for each component. The ordinary share price will now reflect pure equity demand, while the warrant price will be driven by its intrinsic time‑value and implied volatility. Because the warrants trade only in whole units, the market will price them in discrete increments, which can create a noticeable premium or discount relative to the theoretical value derived from the underlying share price and option‑pricing models. Traders can therefore exploit short‑term arbitrage opportunities: when the combined value of FIGX + FIGXW deviates from the prevailing FIGXU price, a spread trade (selling the over‑priced side and buying the under‑priced side) can capture the convergence.

Actionable take‑aways

1. Monitor the split‑trade volumes – a sustained shift of >70 % of daily volume into FIGX/FIGXW signals that the unit will remain illiquid and prone to larger price swings.
   
2. Track the warrant premium/discount – calculate the theoretical warrant value (using Black‑Scholes or a binomial model) and compare it to the market price; persistent deviations present a relative‑value edge.
   
3. Consider a convergence strategy – when FIGXU trades at a significant premium or discount to the sum of FIGX + FIGXW, initiate a market‑neutral spread (long the under‑priced side, short the over‑priced side) while keeping risk limits tight, as the thin unit market can generate rapid price corrections.
   

Overall, the separation will improve price discovery for the equity and the warrant but will compress the unit’s liquidity, making FIGXU a more volatile, less efficient vehicle for investors who continue to hold the combined unit. Traders should pivot to the individual securities for tighter spreads and clearer valuation signals.