SGX unveils step-by-step guidelines for Mainboard firms seeking to transfer to Catalist

Jumping ship isn’t as easy as it sounds.

Mainboard-listed firms which seek to transfer to the Catalist board can do so as long as they follow SGX rules and undergo a review, the regulator said in a column.

The Catalist board provides greater flexibility for a company to raise funds either to implement its growth strategy or to improve its financials. Mainboard firms which seek to transfer to the Catalist are usually those which have difficulty meeting the Minimum Trading Price (MTP) rule or those which have been placed on the Watch-list after failing to meet financial entry criteria.

Companies on the watch-list need to carry out a reverse takeover (RTO) or a very significant acquisition (VSA), or demonstrate improvement in their financials before they apply for a transfer to Catalist.

Meanwhile, companies placed on the Watch-list after 1 March 2016 due only to non-compliance with the MTP rule can choose to transfer to Catalist by appointing a sponsor and applying to SGX for the transfer. The sponsor should be satisfied with the company’s plans to improve its business fundamentals, and that the transfer to Catalist is necessary for the company to address its funding needs and execute its plans.

Read the rules in full here.