SGX rolls out half-yearly update on long-suspended companies

Some firms are mulling a reverse takeover.

In a bid to improve its regulatory framework, Singapore Exchange (SGX) has launched a bi-annual report on companies whose shares have been suspended from trading for at least a year or more.

The move is part of a series of initiatives targeted at boosting regulation of listed companies’ continuing obligations, as well as at the listings admission stage.

The report covers 20 companies and sheds light on their developments, particularly if they have not made company disclosures for some time. In the report, SGX provides information on actions it has taken, and its engagement with the companies, directors, special auditors, judicial managers and/or liquidators.

"This new half-yearly Report on Long-Suspended Companies is part of enhancements in our oversight. We welcome feedback on our initiatives as we work together with market participants to better calibrate our regulatory framework to manage the risks of our diverse listings and cater to the needs of investors,” said Tan Boon Gin, Chief Regulatory Officer of SGX.

The report showed that 11 companies are exploring trading resumption or a reverse takeover, while 2 firms are pursuing court action against individuals. Four companies are in the delisting process, of which 2 are already an exit offer. One company was recently placed under judicial management, while 2 companies are pending responses to SGX queries.

“As much as we may want a speedy conclusion to each case of long-suspended companies, for the benefit of shareholders we aim for the companies to achieve a trading resumption proposal. Otherwise, our next course of action would be to try to extract an exit offer. Only when we are satisfied that the company has established the lack of financial resource for an exit offer will we allow a delisting without an offer,” said June Sim, Head of Listing Compliance, SGX.