Hot stock: Resources Prima hits 19.6 Singapore cents

CATALIST-LISTED Resources Prima Group, formerly Sky One Holdings, climbed to a high of 19.6 Singapore cents during trading on the Singapore Exchange (SGX) on Friday morning.

The mine-owner started trading under its new name on Friday, opening at 19.2 cents. At about 11.55am, it was still trading at 19.2 cents, with 3.59 million shares changing hands.

This comes after logistics firm Sky One acquired Energy Prima for S$265 million, resulting in a reverse takeover (RTO) of Sky One, satisfied through the issue and allotment of shares in the logistics company. In addition, about S$16.7 million will be raised in a placement of shares. Upon completion of the RTO and placement, the enlarged entity will have an estimated market capitalisation of about S$366.6 million.

Resources Prima conducts coal exploration and coal mining in East Kalimantan.

Chief executive Agus Sugiono said that the firm intends to grow both organically and through future mergers and acquisitions.

Lawrence Wong, head of listings at SGX, said: "This is our first Indonesian coal mining company on Catalist, and will also be SGX's largest coal mining company by market capitalisation."

The addition of Resources Prima brings the total number of mining, oil & gas companies on SGX to 25, with a combined market capitalisation of S$5.3 billion.