SGX grants 13 companies three-month extension to prepare for MTP review

On back of recent market volatility.

The local bourse has given some breathing room for 13 mainboard firms before their 6-month volume-weighted average prices are reviewed under the Minimum Trading Price (MTP) requirement.

According to a statement by Singapore Exchange (SGX), the extension means a company cannot 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 criteria,” SGX said. “These 13 companies saw their 6-month volume-weighted average price dip below $0.20 in recent months.”

Additionally, SGX said 4 companies have just triggered the criteria, while of the 4, 3 will join the watch-list on 3 June 2016.

“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,” SGX said.

“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,” SGX added.