ISR Capital at risk of being placed under SGX-ST watchlist

It booked three consecutive years of pre-tax losses and six-month average daily market cap of $11m.

Management consulting firm ISR Capital is at risk of being included to the SGX watchlist after recording pre-tax losses for three consecutive financial years and a six-month average daily market cap of $11m as at 20 June, a filing with the Singapore Exchange (SGX) revealed.

Under the rules of the SGX’s listing manual, the market regulator will place an issuer on the Singapore Exchange Securities Trading (SGX-ST) watchlist if the firm records three consecutive years of pre-tax losses, as well as an average daily market cap of less than $40m over the last six months.

“Investors should also note that pursuant to Practice Note 13.2 Paragraph 2.1, the Exchange conducts quarterly reviews to identify issuers to be included on the watch-list,” ISR Capital noted. The quarterly review will take place on the first market day of March, June, September and December of each year.

It will make an immediate announcement should it be notified by the local bourse that it will be placed on the watchlist.

ISR Capital joins consumer electronics retailer TT International which also faces the risk of inclusion in thee watchlist.

On 6 June, six mainboard-listed firms were included in the watchlist after they all failed to have a volume weighted average price of at least $0.20 per share. The day prior, semiconductor equipment manufacturer ASTI Holdings, Raffles Infrastructure Holdings and engineering firm Mencast Holdings were also notified that they would be placed on the watchlist based on their pre-tax losses for the most recently completed consecutive financial years, as well as failure to have an average daily market capitalisation of $40m or more over the last six months.

Issuers placed on the watchlist have 36 months to be removed from the list. Failure to do so will result in the delisting of the company from the SGX-ST or suspension of the firm’s shares with a view to delist the company.