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Addvalue Tech eyes spin-off, Catalist listing of unit
SATELLITE-BASED communication and data services provider Addvalue Technologies said on Tuesday it is exploring a possible spin-off of its subsidiary Addvalue Solutions (AVS), and intends to seek a listing and quotation of AVS shares on the Singapore Exchange's (SGX) Catalist board.
It added that the firm is also looking to transfer from a mainboard listing on the SGX to a Catalist listing with the introduction of the minimum trading price rule of 20 Singapore cents for mainboard-listed companies. This serves "as an alternative approach to shares consolidation and/or merger and acquisition to meet this requirement", Addvalue said.
In response to the company's application, the SGX has said that it does not consider the proposed spin-off and Catalist listing of Addvalue Technologies' subsidiary as a chain listing. However, this ruling is subject to the company's compliance with the bourse's listing rules and shareholders' approval.
The firm is finalising the terms of engagement of its advisers as well as the continuing sponsor for the transfer of its listing.
AVS undertakes all the firm's business related to its Inter-satellite Data Relay System (IDRS) and efforts have been undertaken to commercialise this business.
Since signing the IDRS airtime distribution agreement with British satellite services provider, Inmarsat, in August this year, AVS has been contacted by prominent players in the low earth orbit (LEO) satellite industry, and is discussing with these potential customers the adoption of the IDRS services for their space missions, the firm said.
Concurrently, AVS has been putting in place its marketing strategy to promote the IDRS products and services globally, it added.
The firm is now in the advanced stage of discussions with a few LEO satellite players to launch satellites that will "lead to the deployment of a multitude of IDRS terminals over the next few years", Addvalue said.
Nonetheless, the company said that shareholders should exercise caution when dealing with its securities as there is no certainty that its proposed plans will be concluded successfully.
As at 9.27am, Addvalue Tech was trading 2.44 per cent higher at 4.2 Singapore cents apiece.