Wednesday, February 3, 2016

SGX grants extension on minimum trading rule to 20 Mainboard stocks

Singapore Exchange will grant a six-month extension for 20 Mainboard-listed companies to meet the minimum trading price (MTP) requirement.

The 20 companies granted extension are companies that have experienced a first-time dip in volume weighted average price of shares below 20 cents due to market volatility last month.

The companies, which will be contacted by SGX, have until Sept 1, 2016 to meet the MTP requirement.

SGX has also changed its formula for calculating MTP following public feedback.

SGX will now align its methodology for calculating minimum share price for companies, which consolidate their shares before March 1, 2016, with that of  “international data companies.”

The volume weight average price of shares following a share consolidation will now be computed based on historical prices adjusted for the consolidation ratio.

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