Strategic springboard or slippery slope: Struggling mainboard-listed Fu Yu wants to move to Catalist
Any aspiring Catalist issuer – whether new or transferring – must have a credible and viable growth strategy: SGX RegCo
Fu Yu Corporation, a struggling mainboard-listed company in Singapore, announced on August 28 its intention to transfer its listing from the Singapore Exchange (SGX) to Catalist. This move may come as a surprise to some market observers, as previous transfers have typically been driven by the need to escape the watch list imposed on mainboard issuers that have persistent losses and cannot maintain a market capitalization of at least S$40 million or a minimum trading price (MTP) of S$0.20.
However, the SGX has eliminated the MTP rule in 2020, replacing it with alternative measures to tackle market manipulation. Additionally, the financial criteria for the watch list was abandoned last year as part of a shift towards a more disclosure-based regulatory environment.
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