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Singapore Exchange (“SGX”) today revealed the Mainboard-listed companies that are placed on its “Watch-List”. The rules governing the new “Watch- List” came into effect on 1 March 2008. Companies on the “Watch-List” are required to provide the market with quarterly updates on their financial situation, including their future directions and any other material developments that may have a significant impact on their financial positions.
(*Please refer to SGX’s website, www.sgx,com, under “Listed Companies”, for list of “Watch-List” companies.)
Under the new Part V of Chapter 13 of the SGX-ST Listing Manual, listed companies will be placed on the “Watch-List” if they register:
- 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
- an average daily market capitalisation of less than S$40 million over the last 120 market days on which trading was not halted or suspended for the full day.
Trading in the Watch-List companies will continue as usual, unless a trading halt or a suspension is effected. These companies may apply for removal from the List upon meeting either one of the following requirements :
- it records consolidated pre-tax profit for the latest completed financial year and has an average daily market capitalisation of $40 million or more over the last 120 market days of full-day trading; or
- it satisfies the Mainboard admission criteria [in Listing Rule 210(2) a or b].
Companies that do not satisfy the criteria for removal from the “Watch-List” within 24 months will face delisting from SGX. The “Watch-List” will be reviewed quarterly.
