SGX offers affected firms six month extension to meet minimum trading price

SINGAPORE - The Singapore Exchange (SGX) is giving affected companies carrying out a share consolidation to comply with the Minimum Trading Price (MTP) requirement, a 6-month extension before they are reviewed for compliance with the MTP requirement.

The 6-month volume-weighted average price of the shares of these companies will thus be assessed only on Sep 1 2016 instead of March 1 2016. The extension will only apply to companies which have consolidated their shares before March 1 2016.

As at the end of October, 94 of the 167 companies likely to be affected by MTP have either acted or announced plans to comply.

Among the 94 companies, 86 have decided on a share consolidation of which 65 have completed this corporate action.

The extended period takes into account the impact of current global market developments on companies' share price performance as well as feedback from investors and companies. The FTSE ST All-share Index has fallen 15.5 per cent from March to November 2015 with a decline of 4.9 per cent in the month of November alone.

Companies which have carried out corporate actions such as mergers and acquisitions or reverse takeovers before 1 March 2016 can engage with SGX for a similar consideration on a case-by-case basis. Companies seeking to transfer to Catalist should also consult the exchange.

gleong@sph.com.sg