Why a delisting makes sense for Sim Lian
THE proposed delisting of Sim Lian Group by its founders may serve as yet another reminder of the meandering state of the Singapore bourse, which has seen or is seeing the exit of household names such as healthy-lifestyle products group OSIM International and traditional Chinese medicine (TCM) group Eu Yan Sang.
What is poignant in the case of the long-listed property construction and development group is that it is seen as largely driven by a persistent undervaluation and poor trading liquidity of its stock, unlike its industry peers Popular Holdings and SC Global which had been taken private to avert paying hefty penalties on residential properties. None of Sim Lian's residential projects are subject to qualifying certificate (QC) conditions, which require extension charges to be paid for unsold residential units two years after the project's completion.
But one would argue that the merits of staying listed for companies such as Sim Lian have paled vis-a-vis the costs of listing, which could be anything between half a million and a million Singapore dollars annually.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
JPMorgan sees gain of about US$8 billion from Visa exchange offer
BlackRock cuts jobs in muni business under new leadership
Grayscale Bitcoin Trust sees first inflows since US ETFs were approved
Goldman Sachs rings in 25 years of public life with stock at record
Nvidia is missing link in a strong season of AI earnings reports
Citi shifts working hours, enhances platform ahead of settlement cycle change