Distressed Swee Hong receives delisting notice

Distressed construction engineering company Swee Hong has received the notification of delisting from the bourse.

This comes after it failed to meet the required financial criteria and market capitalisation to be removed from the Singapore Exchange watch list.

In a regulatory statement on Sunday, the company said that Singapore Exchange Securities Trading has notified it that it is to be delisted by Sept 21.

A fair and reasonable exit offer proposal must be offered to shareholders and holders of other classes of listed securities.

Swee Hong was placed on the SGX watch list on Dec 5, 2016, based on the financial entry criteria.

But the firm failed to improve its financials and market capitalisation in order to be removed from the watch list despite being given three years to meet the requirements.

Trading in shares of Swee Hong has been suspended since May last year with their last closing price at 0.3 cent.

Swee Hong was founded in Singapore in 1962 and offers construction engineering services such as tunnelling works. It was listed in 2012.

There are currently over 40 firms on the SGX watch list, which puts on notice companies that have failed to maintain the six-month average daily market value and have posted pre-tax losses for their last three financial years.

THE BUSINESS TIMES