JOHANNESBURG (Business Day) -- South African Coal Mining Holdings shares gained 10% on a comparable basis on their first day of listing on the JSE after a change of name, a 1-for-10 share consolidation and the introduction of new major shareholders and assets.
The company, which was previously listed as Yomhlaba Resources, was trading at 375 South African cents per share yesterday afternoon compared with a pre-consolidation price of 34 SA cents per share on Friday. Trade was light, with about 8,500 shares changing hands in five deals.
After a week of turbulence on world markets, the JSE's all share index was almost 3% higher yesterday and the mining index gained 4%.
Acting CEO Karl Gribnitz said it was possible that SA Coal's shares had benefited from some bargain hunting. But he believed the share price probably reflected a better understanding within the market about the opportunities for SA Coal and what the shares could offer.
With its coal mining operations and black controlling shareholders, SA Coal offered the only other pure energy play on the JSE apart from oil company Sasol [NYSE:SSL]. Other listed coal mining companies included non-coal activities, he said.
The shares could also reflect a positive reaction to statements by the new major shareholders, the Royal Bafokeng Nation, Gribnitz said. SA Coal chairman Thabo Mokgatlha said at the listing the company had been transformed into "a coal-focused, growth-orientated mining entity with an ambitious acquisition strategy and Royal Bafokeng Holdings as our ultimate controlling shareholder."
As Yomhlaba, the company's shares were suspended for two years after it lost its main business of beneficiating coal for BHP Billiton Energy Coal [NYSE:BHP] because of a dispute.
