MTP meant to 'nudge' firms to strengthen fundamentals: SGX

Singapore

THE point of imposing a minimum trading price (MTP) of S$0.20 for mainboard-listed stocks is to nudge companies trading below that price level to improve their business fundamentals, Singapore Exchange (SGX) head of listing compliance June Sim said in a phone interview on Wednesday.

If an issuer has to embark on a massive share consolidation just to get its price above the MTP, that signals that a consolidation alone will likely not be enough and the firm will have to take other steps to boost its price, such as doing a reverse takeover or acquisition, she added.

"We're not trying to get rid of companies but to nudge them to improve their financial performance... at the start they can do …