The company, which is listed on the Australian Securities Exchange (ASX) OM Holdings Ltd (OMH) started its listing on the Main Market of Bursa Malaysia this morning at RM2.72, registering a premium of 5.84% from its reference price of RM2.57 per share.
OMH made its first cross -listing on Bursa Malaysia and the ASX by way of introduction and will not involve the issuance of new shares.
Bernama reported that as of 11.30am, OMH was among those who recorded gains on the exchange, rising 27 sen to RM2.84 with 414,400 shares changing hands.
In a filing to Bursa Malaysia yesterday, the manganese ore and ferroalloys producer said the listing reference price and the number of OMH shares available for trading from the existing issued capital were RM2.57 and 16.8 million shares, respectively.
The trading prices of OMH shares on Bursa Malaysia and the ASX may differ not only due to volatile movements of currencies but also dynamic demand and supply as well as differences in trading participants and investor bases on the two exchanges.
According to Executive Chairman and Chief Executive Officer, Low Ngee Tong, OMH's secondary listing is also in line with the company's future expansion plans for upstream and downstream business activities in an effort to capture growth in the region.
"At the same time, we hope to expand our presence among Malaysian investors as well as increase trading activities and stock liquidity in the Malaysian capital market," he said in a virtual press conference after the group's listing today.
Meanwhile, OM Materials (S) Pte Ltd's general manager of marketing and trading, Adrian Low Jia Yuan, said it intended to expand its reach and investor base, as well as potentially increase stock liquidity through a separate trading platform.
He added the move would allow OMH to leverage on additional platforms for fundraising in the future and provide flexibility to access different equity markets to raise funds.
"We may implement fundraising from the Malaysian capital market after the secondary listing and channel funds towards expanding our plant in Sarawak," he said.
OMH operates ferroalloy smelting and manganese sintering facilities in Sarawak, Malaysia through a joint venture with Samalaju Industries Sdn Bhd, a subsidiary of Cahya Mata Sarawak Bhd as well as in Qinzhou, China.
The company also owns manganese ore mining operations based at Bootu Creek Mine, Northern Territory of Australia and a 13% stake in the Tshipi Borwa manganese mine in South Africa while logistics, marketing and trading activities are conducted at its main distribution hub in Singapore.
On future plans, Low said the company planned to expand its capacity by 2023 through capital expenditure of A $ 100 million to A $ 150 million.
This measure is expected, among others, to produce an additional 150 kilotons a year of silicon manganese.
It also explores potential manganese opportunities in the central part of Western Australia.
