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Wednesday 4 November 2009
SGX rejects listing of See Hup Seng subsidiary
See Hup Seng said yesterday that a proposal to list its subsidiary Tat Petroleum on the Singapore Exchange mainboard has been rejected by SGX because it may breach its chain listing rule.
See Hup Seng said yesterday that a proposal to list its subsidiary Tat Petroleum on the Singapore Exchange mainboard has been rejected by SGX because it may breach its chain listing rule.
Rule 210 (6) of the SGX’s listing manual prohibits the listing of a subsidiary whose assets and operations are substantially the same as its listed parent company. See Hup Seng, which provides corrosion prevention services to the marine industry, was subject to this rule since Tat Petroleum, a 51 per cent subsidiary that distributes refined petroleum products, was a significant contributor to See Hup Seng’s profits.
The company had prepared a possible listing of Tat Petroleum since September 2008 but suspended the process in February due to poor market conditions. On August 4, it said it resumed work on the listing.
Yesterday, See Hup Seng said it will postpone the listing of Tat Petroleum ‘to a later date when the chain listing rule is no longer an issue’.
See Hup Seng bought its stake in Tat Petroleum from five vendors in January 2007 for $12.75 million and the deal came with profit warranties for 2008 and 2009.
In July, See Hup Seng announced a rights issue of warrants to raise net proceeds of $1.7 million for working capital purposes.
The firm issued 178,128,050 warrants - at the rate of one warrant for every two ordinary shares held - at one cent each. Each warrant can be used to subscribe for one share at an exercise price of 23 cents, and if all are exercised the company could raise a further $40.97 million.
The stock fell 1.5 cents or 4.7 per cent yesterday to 30.5 cents.
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SGX rejects listing of See Hup Seng subsidiary
By CHEW XIANG
04 November 2009
See Hup Seng said yesterday that a proposal to list its subsidiary Tat Petroleum on the Singapore Exchange mainboard has been rejected by SGX because it may breach its chain listing rule.
Rule 210 (6) of the SGX’s listing manual prohibits the listing of a subsidiary whose assets and operations are substantially the same as its listed parent company. See Hup Seng, which provides corrosion prevention services to the marine industry, was subject to this rule since Tat Petroleum, a 51 per cent subsidiary that distributes refined petroleum products, was a significant contributor to See Hup Seng’s profits.
The company had prepared a possible listing of Tat Petroleum since September 2008 but suspended the process in February due to poor market conditions. On August 4, it said it resumed work on the listing.
Yesterday, See Hup Seng said it will postpone the listing of Tat Petroleum ‘to a later date when the chain listing rule is no longer an issue’.
See Hup Seng bought its stake in Tat Petroleum from five vendors in January 2007 for $12.75 million and the deal came with profit warranties for 2008 and 2009.
In July, See Hup Seng announced a rights issue of warrants to raise net proceeds of $1.7 million for working capital purposes.
The firm issued 178,128,050 warrants - at the rate of one warrant for every two ordinary shares held - at one cent each. Each warrant can be used to subscribe for one share at an exercise price of 23 cents, and if all are exercised the company could raise a further $40.97 million.
The stock fell 1.5 cents or 4.7 per cent yesterday to 30.5 cents.
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