JOHANNESBURG (I-Net Bridge) -- Petmin [JSE:PET; AIM:PTMN], the JSE and recently AIM-listed diversified junior miner, is trading 75% up on its initial offering price in London, while the share price in Johannesburg has remained relatively unmoved at R1.42.
The anthracite and silica miner sold 30 million shares at 9 pence each (R1.25 each) in December as the company took up a secondary listing on the London Stock Exchange's Alternative Investment Market (AIM), a favoured bourse for junior miners over the past few years.
The Petmin share price, albeit with small volumes, has since moved up to 15.50 pence a share (R2.10 each) by Wednesday afternoon, a price that is over 40% higher than the trading price in Johannesburg.
One local fund manager that owns shares in the company says he expects the London market to be the price maker of Petmin in future predicting that the local price may "play some sort of catch up" once investors return from the holiday season and the differential is picked up, although he did point out that the share's lack of liquidity may play a role.
By 16:15 on Wednesday 53,000 shares traded in Johannesburg, with the last price at R1.42 per share, valuing the company at 681 million rand.
In London 12,150 shares traded on Wednesday, with the last trade at 15.80 pence per share (R2.14 each).
Petmin is a multi-asset mining company, with specialist coal and silica assets in South Africa. The Group's principal mining assets are:
© 2009 Petmin Limited