Union Gas secures in-principle approval for mainboard transfer

Union Gas said that it eyes greater visibility and market recognition with a listing on the mainboard.
Union Gas said that it eyes greater visibility and market recognition with a listing on the mainboard.PHOTO: UNION

SINGAPORE (THE BUSINESS TIMES) - Fuel products provider Union Gas has received in-principle approval from the Singapore Exchange to transfer from the junior Catalist board to the mainboard, subject to shareholders' approval at an extraordinary general meeting.

Union Gas was listed on the Catalist in July 2017. In a Thursday night press release, the company said that it eyes greater visibility and market recognition with a listing on the mainboard.

Chief executive Teo Hark Piang hopes that move to the mainboard will provide "a wider platform to reach out to a larger investor base, which may include institution investor and/or overseas based investors, with greater opportunities for future fund raising and corporate actions".

"This could potentially facilitate the group to better tap into capital markets, both equity and debt . . . to meet Union Gas' funding requirements and provide the group with greater flexibility to pursue its future plans," he said.

The move is also a plus for branding and sustainability as it accords positive mindshare in the market and among job seekers, allowing for talent attraction, Mr Teo added.

Union Gas has over 40 years of operating track record. Its three key offerings are retail liquefied petroleum gas, compressed natural gas and diesel. It has a fleet of over 200 delivery vehicles.

Shares of Union Gas closed at S$0.955 on Thursday, down 1.04 per cent.