In my previous posting, I have highlighted the importance of the...

In my previous posting, I have highlighted the importance of the secondary listing for OMH and I think it should be further emphasized here:
1) Given its revenue turnover of more than A$1billion and operating company, it ‘s share trading liquidity cannot even be compared to Bryah (exploration company with no revenue), or many other no revenue/no profit listed entities on ASX
2) No liquidity, no buyers, leading to share price dropping more than 80% from its peak with just one key shareholder trying to exit. Imagine if you have more shareholders running for exit. The current share price is probably below what it was 15-20 years ago. OMH has not grown in value, it’s value has even dropped compared to 15-20 years ago.
3) This lack of liquidity of the stock resulted in the stock price being easily manipulated with just small volume of trade. I do see signs that this is happening now.
4) The consequences are that the company is unable to raise funds in the crucial juncture in a financial crunch, bankers getting worried of failing share price which is normally a trigger point for concern, shareholders being penalized unnecessary for the lack of capability of the management/director’s ability to handle the capital market.

If you remember back in 2011 when OMH tried to do secondary listing in HK, the intention was to raise funds for its Sarawak investments. However, the HK listing failed. In addition, the company unable to raise enough any equity placements from the ASX market and they tried unsuccessfully to do rights issue which was much undersubscribed, which resulted in insufficient equity to undertake Sarawak project. This was followed by commodity downturn 2013-2017 which almost bankrupted OMH.

OMH has missed a golden opportunity to raise funding in the recent good times to reduce its high debt level. If they have been in another exchange (Bursa/HK) earlier, this could have been easily done and the company would be in a better position to ride through this crisis with a much lower debt. This boils down to the lack of early action and management/directors foresight.

So, it’s imperative that management/directors needs to push through the Bursa IPO by pressuring the IPO manager more (to take more than 12 months for secondary listing is beyond normal acceptable timeline). Being ready, even in this uncertain market, is important.

The risks of making the same mistake again and again (by thinking you can rely on same market that has no interest in your stock for the last many years) are unthinkable. History is great teacher for us to avoid those same mistakes again

OMH management/directors realized the problem of poor liquidity more than 10 years ago (that’s one of the reason for HK secondary list then). 10 years later, the poor liquidity, poor valuation problem persists as can be seen from the current low share price with poor liquidity. Is 10 years a long enough time for shareholders to wait? The loyal shareholders of OMH are ultimately bearing the costs of the delay.

The message here is very clear: ASX is unable to support OMH, complete the secondary listing and get the company ready for fund raising once the market picks up, increase the liquidity and investor base as has been promised. The commodity space that OMH is in is too volatility and has no room for procrastination.