It has fulfilled all conditions for the move; shareholder approval obtained at EGM on Aug 18
[SINGAPORE] Engineering solutions provider Koh Brothers Eco Engineering will transfer its listing from the Catalist board of the Singapore Exchange (SGX) to the mainboard with effect from Oct 29.
Trading of the company’s shares on the mainboard will commence at 9 am that day, it announced in a bourse filing on Thursday (Oct 22).
The company said it has fulfilled all conditions attached to the approval-in-principle granted by SGX on Jun 30. Shareholders had approved the transfer at an extraordinary general meeting on Aug 18.
Koh Brothers Eco Engineering, which has been listed on Catalist since Feb 27, 2006, submitted its application for the transfer on May 27.
The company said then that a mainboard listing would better reflect its stage of development and growth prospects, while raising its profile among local and overseas investors.
It added that the move could improve share liquidity, broaden its investor base and provide greater opportunities for future fundraising.
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Upon the transfer, RHT Capital will cease to be the company’s sponsor, while SAC Capital will take over as its compliance adviser.
The transfer comes after the company disclosed three major legal disputes on Aug 18 that could expose it to nearly S$57.6 million in potential liabilities.
These comprise a joint-venture dispute involving potential liabilities of S$20.5 million arising from arbitration counterclaims; a S$23.3 million consortium arbitration over alleged unpaid capital contributions; and a claim of up to S$13.8 million by a former subcontractor alleging wrongful termination and conspiracy.
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Despite the legal proceedings, the company has previously stated that the disputes do not cast significant doubt on its viability as a going concern.
Shares of Koh Brothers Eco Engineering fell nearly 10 per cent on Aug 18 following the disclosure, before declining a further 5.8 per cent to S$0.097 the following day. On Thursday, the counter closed at S$0.066, down S$0.003 or 4.4 per cent on the day.
Koh Brothers Eco Engineering is a subsidiary of construction and property group Koh Brothers , which holds a 54.8 per cent stake in the company.