Southern Alliance Mining ends 8% up on trading debut

Singapore

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 per cent above 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 sustain its intra-day high of S$0.27 till the end of trading.

As at market close on Friday, the company has a market capitalisation of around S$132 million.

The firm on Thursday said its placement of 76 million shares at S$0.25 each was fully subscribed. It raised S$19 million in gross proceeds.

It will use the net proceeds of around S$11.9 million to further exploration activities, invest in mining equipment and infrastructure, and expand through acquisitions, joint ventures and strategic alliances. 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.

Said SAM's chief executive officer and executive director Pek Kok Sam in a press statement: "Despite the weakened market sentiment and the economic uncertainties caused by the Covid-19 pandemic, the response from investors to our share offering has been encouraging."