KUALA LUMPUR (Nov 30): Mining firm OM Holdings Ltd, which is dual-listed on Bursa Malaysia and the Australian Stock Exchange, has issued 27.63 million shares, representing a 3.75% stake, in the company to JFE Shoji Corp for A$13.04 million (about RM40.34 million) or A$0.472 sen per share.

The issue price represented the volume weighted average price per OMH share traded on the ASX over the 10 trading day period ending on Nov 24, 2023, the group said in a statement on Friday. The shares are expected to be issued and quoted on ASX on Dec 4.

According to the group, JFE Shoji is a wholly-owned subsidiary of JFE Holdings Inc — a Japanese international trading company with business operations mainly in the marketing and distribution of steel products and raw materials for steel and machinery.

OM Holdings' executive chairman and chief executive officer Low Ngee Tong said the group is pleased to welcome JFE as the group's shareholder.

“This share placement was tailored to crystallise the long-term relationship given the decade-long support, and to build a sustainable and green supply chain in collaboration with JFE.

“We value JFE’s continuous support and look forward to a strong working relationship to support the growth of the company,” he said.

Net proceeds raised from the issuance of the subscription shares to JFE will be used for working capital, the group added.

Shares in OM Holdings Ltd closed three sen or 2% lower to RM1.47 on Bursa, giving it a market capitalisation of RM1.09 billion.