SINGAPORE: Singapore Exchange (SGX) has welcomed Southern Alliance Mining Ltd. to its Catalist under the stock code “QNS”. Southern Alliance Mining Ltd. opened at S$0.26 on Friday.
Southern Alliance Mining Ltd. is an established producer of high-grade iron ore products in Malaysia, principally involved in the exploration, mining and processing of iron ore for sale. It is currently operating the Chaah Mine in Johor, Malaysia, with the rights to carry out exploration and mining operations at three exploration assets in Johor.
Dato’ Sri Pek Kok Sam, CEO and Executive Director of Southern Alliance Mining Ltd. (SAM), said, “The IPO on SGX is a significant milestone for SAM. After years of dedication and hard work, we have built a proven financial and operational track record. SAM commands a unique market position given our good and long-standing relationships with our customers in both Malaysia and China, our established operating system and logistics infrastructure, and the proximity to road networks and ports. Our iron ore products are sold not only to steel mills but also to the oil & gas industry as raw materials for sub-sea pipe coating. This unique product mix brings us diversified revenue streams and market opportunities in two industry sectors.”
“Iron ore is widely known as the lifeblood of the global industrial base. Despite the recent economic impact caused by the COVID-19 pandemic, the demand and price for iron ore have remained stable. SAM is well-positioned to meet the demand for high-quality iron ore products in the region upon the recovery of the steel and oil & gas industries industries as the stimulus measures are expected to drive demand. We are reasonably confident to proceed with our plans to conduct further exploration activities at the Chaah Mine and three other potential iron ore assets after our listing. We hope these will yield favourable results for us to meet market demand and drive our future growth,” he added.
Mohamed Nasser Ismail, Global Head of Equity Capital Markets, SGX, said, “We are delighted to welcome Southern Alliance Mining on SGX, a global hub for the world’s iron ore and commodity trading community. With infrastructure spending in China and across Southeast Asia expected to increase, we look forward to support Southern Alliance Mining as they seek new opportunities post listing.”
With a market capitalisation of around S$122 million, the listing of Southern Alliance Mining Ltd. brings the total number of companies listed on Catalist to 216, with a combined market capitalisation of about S$9 billion. Within the commodities sector, there are currently 33 companies listed on SGX with a total market cap of around S$38 billion.