YuuZoo lands in the hotseat as SGX issues public reprimand for listing rule breach

Its SGXNet announcement was “not balanced and fair”.

The Singapore Exchange (SGX) has placed Mainboard-listed social e-commerce firm YuuZoo in the hot seat, as SGX has issued a public reprimand for YuuZoo’s misuse of SGXNet.

According to SGX’s announcement, YuuZoo breached Listing Rule 703(4), read with Paragraph 25(c) of Appendix 7.1. The rule requires a company’s announcement to be balanced and fair. The rule also requires a company to avoid, among other things, presentation of favourable possibilities as certain or as more probable than is actually the case; and the presentation of projections without sufficient qualification or without sufficient factual basis.

The reprimand is in relation to an SGXNet announcement made by YuuZoo after the market closed on 21 May 2015. The announcement contained a news release from YuuZoo and a copy of a research report by Edison Investment Research Limited (Edison).

“SGX is of the view that YuuZoo’s SGXNet announcement and news release were not balanced and fair as the company presented the most optimistic scenario of a fair value of up to S$1.83 without sufficient qualification or explanation,” stated SGX.

SGX argues that presenting the most favourable outcome without providing enough details for a proper understanding of the information could lead to the investing public not making informed investment choices.