The suspension was first put in effect in June 2020, when economies and companies were struggling to deal with the pandemic-induced crisis. The suspension was already extended once, on May 21 2021.
“As multiple sectors of the economy are only beginning to stabilize from the effects of the Covid-19 pandemic and many restrictions were relaxed just recently in 2022, we intend to allow all issuers a full financial year to operate under normal business conditions and recover from the challenges presented by the Covid-19 pandemic,” says SGX RegCo on May 26.
“SGX RegCo will re-commence our half-yearly watch-list review only from June 1 2023.”
SGX RegCo typically reviews on a half-yearly basis, on the first market days of June and December, listed issuers for their compliance with the watch-list requirements.
Under Listing Rule 1311, companies are to be placed on the watch-list if they report pre-tax losses for the 3 most recently consecutive financial years, and have an average daily market capitalisation of less than S$40 million over the last 6 months.
There are now 27 companies on the SGX Watch-List. They face delisting if they could not meet certain operating metrics.
Companies do exit the Watch-List, although they are far and few in between.
