Watch-List1 companies will be given a 12-month extension to improve their financial performance and meet the requirements to exit from the Watch-List if they satisfy either one of the two criteria2, namely report a pre-tax profit, or have a minimum market capitalisation of S$40 million. This extension will be granted to Watch-List companies that are due for review in 2010.
Ms Yeo Lian Sim, Senior Executive Vice President and Head of Risk Management & Regulation said, “In view of the unusual and difficult market conditions of the last 2 years, SGX has decided to grant Watch-List companies an extension to improve their business performance”.
Companies that are given the extension will continue to provide the market with
quarterly updates on their financial situation, including future directions and
any other material developments.
Watch-List companies that do not satisfy either the profit requirement or the
market capitalisation requirement face delisting3.
Eight Watch-List companies are up for review on 4 March 2010 and those that qualify for the extension will be reassessed in March 2011. The eight companies are as follows:-
- ASA Group Holdings Ltd
- Chinasing Investment Holdings Limited
- Chuan Soon Huat Industrial Group Ltd
- Fastech Synergy Ltd
- General Magnetics Limited
- Ionics EMS Inc
- H Petrogas Limited
- Unified Communications Holdings Limited
(1) The rules governing the Watch-List came into effect on 1 March
2008. Under SGX-ST Listing Rule 1311, listed companies will be placed on
the Watch-List if they register:-
(a) pre-tax losses for the three most recently completed consecutive financial
years (based on the latest announced full year consolidated accounts, excluding
exceptional or non-recurrent income and extraordinary items); and
(b) an average daily market capitalization of less than S$40 million over the
last 120 market days on which trading was not halted or suspended for the full
day.
As stated in SGX-ST Listing Rule 1315, the company has 24 months, from the date
on which it is placed on the Watch-List, to restore its financial health to
prescribed levels as stipulated in SGX-ST Listing Rule 1314.
(2) Under SGX-ST Listing Rule 1314, a company may apply for exit from the
Watch-List if it
(a) records pre-tax profit (excluding exceptional or non-recurrent income and
extraordinary items) for the latest completed financial year; and
(b) has an average daily market capitalisation of S$40 million or more over the
last 120 market days on which trading was not halted or suspended for the full
day.
(3) The company or its controlling shareholder(s) will have to comply with the requirements of SGX-ST Listing Rule 1306 by making a reasonable exit offer to shareholders.
