Why are companies delisting from SGX?

[kagemusha]

Hi buddies,

Just curious as to why so many companies de-listing from SGX.

Are their charges or reporting requirement really costing them that much?
Almost all companies that de-list, stated that as the reason.

Is that true or is it just a convenient excuse?

Should shareholders be concern if this trend continues??

[CityFarmer]

Hi buddies,

Just curious as to why so many companies de-listing from SGX.

Are their charges or reporting requirement really costing them that much?
Almost all companies that de-list, stated that as the reason.

Is that true or is it just a convenient excuse?

Should shareholders be concern if this trend continues??

The fees are not cheap, especially for small/medium cap counters. There are various fees needed
- initial listing fee, and additional listing fees, which are one-time
- annual listing fee, and processing fees, which are recurrence.

On top of that, there are compliance expenses needed e.g. AGM, additional audit requirements etc.

The detail of the fees are in SGX website

http://www.sgx.com/wps/portal/sgxweb/hom...sting_fees

[sgd]

Hi buddies,

Just curious as to why so many companies de-listing from SGX.

Are their charges or reporting requirement really costing them that much?
Almost all companies that de-list, stated that as the reason.

Is that true or is it just a convenient excuse?

Should shareholders be concern if this trend continues??

singapore exchange is quite slow, a lot of stocks are illiquid. but could also could be a greed and incentive factor at time of delist share price could be a fraction of what they were when they first went IPO.

Or maybe at time of listing company had high debt and so so profit, so they IPO - exit strategy take back their capital first then after a few years gone by the debt could have come down business could have expanded or maybe not so visible some assets like property have matured and now worth more than they were before but not reflected in share price so kio tio gu lan delist and keep it private for ownself.

in the first place usually if is really good low risk high cash generating company nobody will IPO

[kagemusha]

I guess, its not in investors advantage for a public listed company to de-list.
Although we can say there is no change from investment point of view, but from a transparency point of view, investors do not have visibility of how company performs by quarter.
I would like to explore the advantages and disadvantages of accepting an exit offer rather than going private.

Any buddies got any views on this, just from a private vs public pov.

[Contrarian]

When they need $ from you, they will list.

When they want to keep profit for themselves, and got good deal, they will delist.

[Porkbelly]

I guess, its not in investors advantage for a public listed company to de-list.
Although we can say there is no change from investment point of view, but from a transparency point of view, investors do not have visibility of how company performs by quarter.
I would like to explore the advantages and disadvantages of accepting an exit offer rather than going private.

Any buddies got any views on this, just from a private vs public pov.

I think once delisted, they cannot have more than 50 shareholders ( individual ) though corporations can be a shareholder. There is also a difference between 'shareholder' and 'member' of a pte ltd company.. which it becomes once delisted.

Unless you are a shareholder with substantial holdings, you are stuck. Cannot sell shares, unless the company offers you again ( after delisting ). My opinion is that if a company wants to delist, I have no choice but to sell in market or accept their offer, whichever is a better gain.

If you choose not to accept or sell in the market, you may end up with worthless paper. They can ignore you and not inform you of meetings or not reveal profit or loss. You may not have tittle to dividends either.

[specuvestor]

Unless you are a shareholder with substantial holdings, you are stuck. Cannot sell shares, unless the company offers you again ( after delisting ).

You can still sell OTC... if anyone is interested in an unlisted company

I don't think there is any difference LEGALLY between a "shareholder" and "member' of a listed/unlisted company. Both are members defined by the same one and only Companies Act. The difference is the SGX listing requirements.

For example they still need to have AGM and file their financials under the Companies Act.

[opmi]

I guess, its not in investors advantage for a public listed company to de-list.
Although we can say there is no change from investment point of view, but from a transparency point of view, investors do not have visibility of how company performs by quarter.
I would like to explore the advantages and disadvantages of accepting an exit offer rather than going private.

Any buddies got any views on this, just from a private vs public pov.

I think once delisted, they cannot have more than 50 shareholders ( individual ) though corporations can be a shareholder. There is also a difference between 'shareholder' and 'member' of a pte ltd company.. which it becomes once delisted.

Unless you are a shareholder with substantial holdings, you are stuck. Cannot sell shares, unless the company offers you again ( after delisting ). My opinion is that if a company wants to delist, I have no choice but to sell in market or accept their offer, whichever is a better gain.

If you choose not to accept or sell in the market, you may end up with worthless paper. They can ignore you and not inform you of meetings or not reveal profit or loss. You may not have tittle to dividends either.

50 shareholders threshold determine whether you are a pte ltd or public limited only. A non-listed company can still have more than 50 shareholders. A public company will have more ACRA compliance like audit.

[kagemusha]

Does that means that once they de-list, you are pretty much screwed unless you have substantial holdings?
Even if the offer is not that attractive?

[opmi]

Does that means that once they de-list, you are pretty much screwed unless you have substantial holdings?
Even if the offer is not that attractive?

well, there are successful delisting cases - Want Want, CK Tang and Target Realty.

A lot more screwup cases - if not screwups, they wont get delisted....hahahah...