SINGAPORE (June 26): Pahang-based iron-ore producer Southern Alliance Mining (SAM) made its debut on the Singapore Exchange’s (SGX) Catalist board on Friday, at 26 cents. This is up a cent or 4% from its 25 cent initial public offering (IPO) price.
The company lodged its prospectus on June 16 and was looking to raise $19 million with an all-placement offer of 76 million shares. Of this, 56 million are new shares, while the remaining 20 million are vendor shares sold by SAM’s CEO and executive director Pek Kok Sam.
Collectively, they represent about 15.5% of SAM’s enlarged post-IPO share capital of 489 million shares.
See: Southern Alliance Mining first to list amid Covid-19 outbreak
In a regulatory filing on Thursday, SAM noted that the placement was fully subscribed. It added that 5% or more of the placement shares have been allocated to: Ann Joo Corporation (10 million), Jimmy Chin (10 million), Antelle Holding (9.95 million), Prudential Resources Recycle (8 million), LB Venture Capital (4.89 million) and Pheim Asset Management (4 million).
The application monies from these placements amount to $19 million. This gives SAM a market capitalisation of around $122 million.
These funds have been earmarked for investments in mining equipment, infrastructure as well as for possible acquisitions and other business development activities.
"We hope that our elevated identity as a public-listed company will enhance our customers' trust in SAM, as we continue to supply high grade iron ore products to meet our customers' demand," the group's non-executive and non-independent chairman Teh Teck Tee said on Friday.
Shares of SAM rose to 26.5 cents shortly after the market opened on Friday. The counter further gained 5 cents in the day to close at 27 cents with 4,230.2 million shares traded. At this level, it has a market capitalisation of $132.0 million.
