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Further to our announcement on 21 May 2021, Singapore Exchange Regulation (“SGX RegCo”) in consultation with the Monetary Authority of Singapore (“MAS”) will continue to suspend its half-yearly review to place issuers on the Financial Watch-List until 1 June 2023.
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 requirements. Listing Rule 1311 requires 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.
To enable our issuers to focus on meeting the business and economic challenges and dealing with any resultant liquidity crunch arising from the adverse effects of the COVID-19 pandemic on business operations, SGX RegCo had provisionally suspended the half-yearly watch-list reviews in June 2020 and December 2020 (“Suspension”). A further announcement was made on 21 May 2021 (announcement here) to also include the suspension of the half-yearly watch-list reviews in June 2021 and December 2021.
As multiple sectors of the economy are only beginning to stabilize from the effects of the Covid-19 pandemic and many restrictions were relaxed just recently in 2022, we intend to allow all issuers a full financial year to operate under normal business conditions and recover from the challenges presented by the Covid-19 pandemic. SGX RegCo will re-commence our half-yearly watch-list review only from 1 June 2023.
Companies which meet the exit criteria under the listing rules will continue to be able to exit the Watch-List.
