Singapore Exchange Regulation (“SGX RegCo”) in consultation with the Monetary Authority of Singapore (“MAS”) will on 21 May 2021 continue to suspend the entry of listed companies into the watch-list.
SGX RegCo typically reviews on a half-yearly basis, on the first market days of June and December, listed issuers for their compliance with the watch-list requirement. SGX’s rules require an issuer to be placed on the watch-list if it records pre-tax losses for the 3 most recently completed consecutive financial years (based on audited full year consolidated accounts) and an average daily market capitalisation of less than S$40 million over the last 6 months.
On 8 April 2020 (announcement here) SGX RegCo had provisionally suspended the half-yearly watch-list reviews[1] in June 2020 and December 2020 (“Suspension”). Today’s announcement extends this suspension of the half-yearly reviews beyond the usual first market days of June 2021 and December 2021. The reason for the earlier suspension and today’s extension is similar, namely to enable our issuers to focus on meeting the current business and economic challenges due to the COVID-19 pandemic and dealing with any resultant liquidity crunch.
Companies which meet the exit criteria under the listing rules will continue to be able to exit the Watch-List.
SGX RegCo shall determine where appropriate, if the Suspension requires further extension in due course. If no further extension is granted, the half-yearly review will commence on the first market day of June 2022.
[1] Paragraph 2.2 of Practice Note 13.2 Watch-List states that the Exchange will conduct half-yearly reviews to identify issuers to be included on the watch-list. The half-yearly review will take place on the first market day of June and December of each year. Upon identifying an issuer for inclusion on the watch-list, the Exchange will promptly notify the issuer of its status.
[2] Listing Rule 1311 states that the Exchange will place an issuer on the watch-list, if it records pre-tax losses for the 3 most recently completed consecutive financial years (based on audited full year consolidated accounts) and an average daily market capitalisation of less than S$40 million over the last 6 months.
