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Singapore Exchange (SGX) is giving 13 Mainboard companies affected by recent market volatility till 1 September 2016 before their 6-month volume-weighted average prices are reviewed under the Minimum Trading Price requirement. The extension means no company will be added to the watch-list due to MTP on 3 June 2016.
Of the 13 companies, 2 are already in the SGX watch-list because they had earlier triggered the financial entry criteria1. These 13 companies saw their 6-month volume-weighted average price dip below $0.20 in recent months.
Separately, 4 companies have just triggered the financial entry criteria. Of the 4, 3 will join the watch-list on 3 June 2016 because of the criteria while 1 is already on the watch-list due to MTP.
The watch-list currently has 41 Mainboard companies under the MTP rule. The watch-list also has 33 companies under the financial criteria of which 16 are not compliant with the MTP rule.
All companies placed on the watch-list from 3 March 2016 have 3 years to carry out actions to improve their share price, if they are non-compliant with MTP, or improve their financial performance if they triggered the financial criteria.
The full list of companies on the watch-list is found here.
The lists of companies which will only be reviewed for MTP compliance on 1 September 2016 are found here:
(i) they have completed share consolidation before 1 March 2016 and have 6-month VWAP below S$0.20 (view here),
(ii) they have recently experienced a dip in their VWAP to below S$0.20 (view here); and
(iii) they have been granted an extension after consulting the exchange (view here).
1The financial entry criteria are as follows:
- pre-tax losses for the three (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.
