Southern Alliance Mining achieves 8% premium on trading debut
Add BT as a preferred sourceClaudia Tan HS
MALAYSIA-BASED iron-ore producer Southern Alliance Mining (SAM) on Friday ended its first day of trading on the Catalist board at S$0.27, 8.0 per cent above its its initial public offering (IPO) price of S$0.25.
From the start of trading at 9am till market close, the units traded within a narrow band of S$0.26 to S$0.27. Around 4.2 million shares changed hands.
The stock opened at S$0.26, up S$0.01 or 4 per cent from its IPO price. Its share price rose to 26.5 Singapore cents with 3.1 million shares traded just after 11am, and managed to sustained its intra-day high of S$0.27 till the end of trading.
The company has a market capitalisation of around S$122 million.
The firm on Thursday said its placement of 76 million shares at S$0.25 each was fully subscribed. Application monies received for these placement shares amounted to S$19 million.
It will use the net proceeds of around S$11.9 million to further exploration activities, investment into mining equipment and infrastructure, and expansion through acquisitions, joint ventures and strategic alliances.
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SAM intends to recommend dividends of at least 10 per cent of FY20 net profit, which will increase to at least 15 per cent for FY21 and 20 per cent for FY22.
Within the commodities sector, there are currently 33 companies listed on SGX with a total market cap of around S$38 billion.
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