The Singapore Exchange (SGX) ( Valuation: 2.10, Fundamental: 2.30) has outlined steps Mainboard companies that are on its watch-list should take when deciding to transfer to the Catalist board.
SGX made a distinction between companies to be placed on the watch-list because they do not meet the minimum trading price (MTP) requirement, and those that are on the watch-list due in part to sustained financial losses.
Mainboard firms that are placed on the watch-list only because of non-compliance with the MTP rule can choose to transfer to Catalist by appointing a sponsor and applying to SGX for the transfer.
The sponsor should be satisfied with the company’s plans to improve its business fundamentals, and that the transfer to Catalist is necessary for the company to address its funding needs and execute its plans, SGX said in a regulator’s column.
However, the transfer requirements change for any loss-making mainboard company that is at risk of being placed on the watch-list.
From March 1, at-risk companies would refer to those that would soon register three straight years of losses, and that have an average market capitalisation of under $40 million over a period of six months.
SGX said that such a company must consult the bourse on plans to transfer to the Catalist board. The company must also engage a sponsor to give the company advice on corporate actions relating to fund raising, reverse takeover, or acquisitions and demonstrate that the business is viable.
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SGX made a distinction between companies to be placed on the watch-list because they do not meet the minimum trading price (MTP) requirement, and those that are on the watch-list due in part to sustained financial losses.
Mainboard firms that are placed on the watch-list only because of non-compliance with the MTP rule can choose to transfer to Catalist by appointing a sponsor and applying to SGX for the transfer.
The sponsor should be satisfied with the company’s plans to improve its business fundamentals, and that the transfer to Catalist is necessary for the company to address its funding needs and execute its plans, SGX said in a regulator’s column.
However, the transfer requirements change for any loss-making mainboard company that is at risk of being placed on the watch-list.
From March 1, at-risk companies would refer to those that would soon register three straight years of losses, and that have an average market capitalisation of under $40 million over a period of six months.
SGX said that such a company must consult the bourse on plans to transfer to the Catalist board. The company must also engage a sponsor to give the company advice on corporate actions relating to fund raising, reverse takeover, or acquisitions and demonstrate that the business is viable.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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