Putting the cap on MTP - THE BUSINESS TIMES - Get the ...€¦ · Putting the cap on MTP BT...
1
Putting the cap on MTP BT Graphics Understanding the Singapore Exchange’s proposed changes to the minimum trading price (MTP) framework, and who will be affected MTP watch list mechanics Companies placed on the MTP watch list have 36 months to cure their status or face possible delisting. Moratorium details SGX is suspending the MTP rules while it seeks feedback on the new proposals. Impact of proposals and moratorium Under the proposals, three-quarters of current Mainboard companies will not have to worry about their share price because their market caps are high enough. Key beneficiaries Companies with 6-month VWAP below S$0.20 and market cap above S$40 million. The market cap test could reduce the number of companies on the MTP watch list by about 40 per cent, while the moratorium will spare more than 70 companies from being added to the watch list in September. Entry Criteria Current Pending decision on proposals If proposals accepted If proposals rejected Exit Criteria 6-month VWAP Less than S$0.20 6-month VWAP At least S$0.20 Proposed and Market cap Less than S$40 million and Market cap At least S$40 million ■ No new additions to MTP watch list ■ Quarterly review for exit eligibility of existing MTP watch list members ■ Clock for existing MTP watch list members to cure status will be frozen ■ Half-yearly review for entry and exit eligibility ■ Companies on existing MTP watch list that do not fail both share price and market cap criteria will be removed from the list ■ Clock for existing MTP watch list members to cure status will be reset to 36 months ■ Reviews for entry and exit eligibility resume; frequency dependent on outcome of proposals ■ Clock for existing MTP watch list members to cure status will resume; a company with 2.5 years left on its clock when the moratorium was imposed will have until end-2019 to exit the watch list if the moratorium is lifted in July 2017 375 companies with market cap above S$40 million 507 Mainboard* companies 132 companies with market cap below S$40 million * Excludes secondary listings, suspended stocks and cash companies No of Mainboard companies Current If no moratorium Market cap test in place Benefiting from market cap test On MTP watch list if review happens now On current watch list Enjoying extension for compliance Not on watch list and no extension Total 55 67 385 507 53 64 8 125 39 27 5 71 16** 37 3 56 ** Includes two companies that have raised their share price enough to be removed from the list China Auto Electronics China Kangda Food China New Town Devt Chiwayland International CSC Holdings Enviro-Hub Holdings First Ship Lease Trust FJ Benjamin Fu Yu Rowsley Samko Timber Serial System Sinostar PEC Addvalue Tech Asia Enterprises Ausgroup BBR Broadway Industrial C&G Environmental Protection CDW Dyna-Mac Ezra Falcon Energy Fragrance Group Geo Energy Hafary ISR Capital King Wan KrisEnergy KS Energy Manhattan Resources Marco Polo Marine MDR Mermaid Maritime Nam Cheong OKH Global Ossia International Parkson Retail Asia Ramba Energy RH Petrogas Rickmers Maritime Soup Restaurant Sunvic Chemical Swissco TEE Land TT International UPP Holdings Vard Holdings Ying Li International Yuuzoo Cheung Woh MFG Integration Samudera Shipping Vicplas International Previously received extension to comply Already on MTP watch list Not on watch list and no compliance extension
Transcript of Putting the cap on MTP - THE BUSINESS TIMES - Get the ...€¦ · Putting the cap on MTP BT...
Putting the cap on MTP
BT Graphics
Understanding the Singapore Exchange’s proposed changesto the minimum trading price (MTP) framework, and whowill be affected
MTP watch list mechanicsCompanies placed on the MTP watch list have 36 months to cure their status or face possible delisting.
Moratorium detailsSGX is suspending the MTP rules while it seeks feedback on the new proposals.
Impact of proposals and moratoriumUnder the proposals, three-quarters of current Mainboard companieswill not have to worry about their share price because their market caps are high enough.
Key beneficiariesCompanies with 6-month VWAP below S$0.20 and market capabove S$40 million.
The market cap test could reduce the number of companies on the MTP watch list by about 40 per cent, while the moratorium will spare more than 70 companies from being added to the watch list in September.
Entry Criteria
Current
Pending decisionon proposals
If proposals accepted If proposals rejected
Exit Criteria
6-month VWAPLess than S$0.20
6-month VWAPAt least S$0.20
Proposed and Market capLess than S$40 million
and Market capAt least S$40 million
� No new additions to MTP watch list� Quarterly review for exit eligibility of existing MTP watch list members� Clock for existing MTP watch list members to cure status will be frozen
� Half-yearly review for entry and exit eligibility� Companies on existing MTP watch list that do not fail both share price and market cap criteria will be removed from the list� Clock for existing MTP watch list members to cure status will be reset to 36 months
� Reviews for entry and exit eligibility resume; frequency dependent on outcome of proposals� Clock for existing MTP watch list members to cure status will resume; a company with 2.5 years left on its clock when the moratorium was imposed will have until end-2019 to exit the watch list if the moratorium is lifted in July 2017
375companieswith marketcap above
S$40 million
507Mainboard*companies
132companieswith marketcap below
S$40 million
* Excludes secondary listings, suspended stocks and cash companies
No of Mainboardcompanies
Current If nomoratorium
Market captest in place
Benefiting frommarket cap test
On MTP watch list if reviewhappens now
On currentwatch list
Enjoying extensionfor compliance
Not on watch listand no extension
Total
55
67
385
507
53
64
8
125
39
27
5
71
16**
37
3
56** Includes two companies that have raised their share price enough to be removed from the list
China Auto ElectronicsChina Kangda FoodChina New Town DevtChiwayland InternationalCSC HoldingsEnviro-Hub HoldingsFirst Ship Lease TrustFJ BenjaminFu YuRowsleySamko TimberSerial SystemSinostar PEC
Addvalue TechAsia EnterprisesAusgroupBBRBroadway IndustrialC&G Environmental ProtectionCDWDyna-MacEzraFalcon EnergyFragrance GroupGeo EnergyHafaryISR CapitalKing WanKrisEnergyKS EnergyManhattan ResourcesMarco Polo Marine
MDRMermaid MaritimeNam CheongOKH GlobalOssia InternationalParkson Retail AsiaRamba EnergyRH PetrogasRickmers MaritimeSoup RestaurantSunvic ChemicalSwisscoTEE LandTT InternationalUPP HoldingsVard HoldingsYing Li InternationalYuuzoo
Cheung WohMFG IntegrationSamudera ShippingVicplas International
Previously received extension to complyAlready on MTP watch list
Not on watch list andno compliance extension
