OREANDA-NEWS. A total of 41 Mainboard companies will be placed on Singapore Exchange’s (SGX) watch-list from 3 March 2016 because they do not comply with the minimum trading price (MTP) requirement.

In addition, 2 companies will be added to the watch-list on the same day because they triggered the financial entry criteria1.

Prior to 3 March 2016, there were 33 companies already on the watch-list because they had triggered the financial entry criteria. Of these, 16 are not compliant with the MTP rule.

All companies which will be 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 entry criteria.

“Companies placed on the SGX watch-list should focus on improving their fundamentals and financial performance during this period. Putting these companies on a watch-list increases transparency for investors, enabling them to more easily monitor the companies they have invested in. Since the introduction of the watch-list effective March 2008, a significant number of companies were able to improve their financial performance and exit the watch-list,” said June Sim, Head of Listing Compliance at SGX. 

1The financial entry criteria are as follows:

  1. pre-tax losses for the three (3) most recently completed consecutive financial years (based on audited full year consolidated accounts); and
  2. an average daily market capitalisation of less than S$40 million over the last 6 months.