SGX's guidelines on transfers from mainboard to the Catalist board

SINGAPORE - Companies listed on the mainboard can consider transferring to the Catalist board, but this is subject to Singapore Exchange's rules and review, SGX said on Monday.

"The Catalist board provides greater flexibility for a company to raise funds either to implement its growth strategy or to improve its financials.

"Catalist companies benefit from higher general share issue mandate and thresholds for acquisitions and disposals. To maintain the Catalist listing status, Catalist companies must retain an SGX-authorised sponsor at all times to supervise them on compliance with SGX rules."

One general requirement for any mainboard company seeking to transfer to the Catalist board is a disclosure in the shareholders' circular on the transfer.

The statement by the company's directors and its sponsor that the firm's working capital is enough for present requirements and for at least 12 months after the transfer.

"In confirming this, the sponsor must undertake independent assessment of the funding needs of the company's operations and growth plans, and be satisfied that the transfer to Catalist board would help address these needs," said SGX.

rachaelb@sph.com.sg