Innopac Holdings to delist from SGX-ST

It failed to record a pre-tax profit and an average daily market cap of $40 or more over the last 120 market days.

Management services firm Innopac Holdings will be delisted from the Singapore Exchange (SGX) after it failed to meet the requirements for its removal from the watchlist, an announcement revealed.

The company was first placed on the Singapore Exchange Securities Trading (SGX-ST) watchlist on 3 June pursuant to listing rule 1311, in which the exchange would place an issuer on the watchlist, if it records pre-tax losses for the three most recently completed consecutive financial years and an average daily market capitalisation of less than $40m over the last 120 market days.

Innopac Holdings had 36 months to record a consolidated pre-tax profit for the most recently completed financial year, and to post an average daily market capitalisation of $40m or more over the last 120 market days on which trading was not suspended or halted, for it to be removed from the watchlist. Whilst the firm applied for an extension for its cure period to exit the watchlist in May, the SGX-ST did not grant its request and informed Innopac that the delisting would proceed.

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Innopac Holdings’ securities will continue trading until 5:16 p.m. on 3 July, and the trading will remain suspended from 9 a.m. on 4 July until the completion of the exit offer.

However, the firm’s executive director Leng Yew Chee Philip said in a filing with the local bourse that “the company has no controlling shareholder, and has not received any proposal or exit offer from any shareholder.”

He also noted the company currently does not have the cash resources to consider making an exit offer to its shareholders.

“The board is currently exploring options to move the company forward, inter alia, to monetise the group’s assets,” he said.